Contract Negotiating Tips

Negotiation is a part of life, and as an attorney, I’ve done my fair share of it. In order for a contract to be considered valid, it must constitute a “meeting of the minds”. This means that both parties who sign the contract are in complete agreement over its provisions. And because of this, many contracts require a little negotiation.

Contraction Negotiating Tip #1: Prepare

Before you even begin to negotiate your contract, determine in advance what you will not change. Anything in your contract that is not subject to negotiation should be spelled out up front so that there are no miscommunications. It will also ensure that you do not back down when the pressure is on.

Contraction Negotiating Tip #2: Have a Positive Starting Point

If you know that the other person will expect to negotiate, hold nothing back on the drafting of your contract. Make your first draft your “wish list” of contracts, and start from there. If you put in the bare minimum and you go to negotiation, you might end up with nothing.

Contraction Negotiating Tip #3: Be Firm

Don’t ever let another person walk over you during contract negotiation. It is unfair to you and it ensures a ‘top-heavy’ contract in favor of the other party. Instead, be firm in your negotiations and don’t be talked into anything with which you disagree.

Contraction Negotiating Tip #4: Bring a Third Party

It is always a good idea for a third party to be present during contract negotiations so that neither you nor the other person gets out of hand. A friend, attorney or business partner can make sure that you don’t agree to something you’ll regret later, and can sit in your “corner” during heated debate.

Contraction Negotiating Tip #5: Know When to Quit

If it becomes obvious that you aren’t going to agree, sometimes it’s better to quit while you’re ahead. People who won’t give an inch during negotiation will probably not be pleasant to work with, and you’ll be better off finding another arrangement with someone else. Put your foot down when it is necessary and in your best interest.

Contraction Negotiating Tip #6: Let the Contract Cool

Before you put your John Hancock on a contract that has just been negotiated, allow it too cool. Think it over for a few days or even for a week, and grow accustomed to the new provisions and terms. It is entirely possible that, in forty-eight hours, you might decide that it doesn’t agree with you after all. If you sign it right after negotiation, you won’t have that option.

Contraction Negotiating Tip #7: Give it to an Attorney

And finally, have an attorney look over the final draft of your contract to make sure that it doesn’t hurt you in any way. If he or she decides that it is appropriate, then you’re ready to go; if not, you’ll have to take the problem to the other party and re-negotiate.