Tips for Successfully Negotiating a Business Contract

Business Contract Negotiation

You and another party have agreed in principle to a deal. Now begins the hard work of reducing that agreement to a written business contract. The most well-drafted contracts will clearly explain the rights and obligations of all parties.

But how the terms of that contract will ultimately look will depend on how well you negotiate. For all of your contract law needs, you can rely on the New York business lawyers of Rosenbaum & Taylor. Contact us today for a free consultation.

Why Hiring an Attorney Should Be at the Top of the List

If you do nothing else to negotiate your business contract, at least retain skilled legal counsel. Having a knowledgeable attorney is the best way to ensure your rights and interests are given top priority. However, your lawyer should have experience handling a wide variety of contracts governed by New York law. Our firm has represented countless clients and can negotiate effectively on your behalf.

How to Make Contract Negotiations a Success

Working with your New York business law attorney, you may employ several strategies to arrive at the best possible contract. These could include the following.

Breaking the Negotiation into Parts

The more complicated the contract, the more difficult it is to negotiate everything at once. Attempting to do so often leads one or both parties to an all-or-nothing approach. This rarely ever works and could destroy the deal. Compartmentalize the negotiation by breaking it into several individual sections.

Emphasize Standard Deal Terms

There are usually clauses in contracts that are standard across a given industry. These standards may concern pricing or other terms which are typical for the type of contract involved. If you wish to include these but receive pushback from the other party, shift the burden back to that party.

Ask them why they want terms that depart from the norm. This is usually difficult to justify and gives you leverage in the negotiations.

Take Control of the Negotiations

Controlling various aspects of the negotiations – from the timing and location to the items to be discussed – can yield advantages. So, too, can being the party who writes the initial contract draft. Adopting this approach gives you the power to set the agenda and tone and better frame the negotiations to your advantage.

Remove Emotions and Personalities

No matter the nature of the contract, negotiations surrounding it should be viewed as strictly business. You have the right, as a party to the negotiations, to work to attain your best interests. So look past the individuals at the negotiating table and any emotions to understand everyone else’s interests, too. Viewing the contract in these absolute terms can save time and better focus discussions.

Allow Concessions

You never want the other party to believe they are being coerced into a disadvantageous agreement. If a party feels like they are getting a raw deal, they could walk away. Therefore, when you make offers, allow enough room to make concessions.

Never start with your bottom line. Give yourself room to negotiate so the other party can walk away feeling like they’ve won something.

Do Your Research

This is where having a New York business attorney will especially prove effective. It’s imperative that your lawyer knows contract law, which terms are standard, and the ins and outs of your industry. This knowledge will help you to not only offer reasonable terms but also to reject unreasonable ones.

Count on Rosenbaum & Taylor to Handle Your Business Contracts

Our attorneys are effective negotiators who understand what’s at stake for our clients. That’s why so many businesses turn to us to assist with all issues pertaining to their contracts. If you’ve reached a deal with another party and it’s time to draft the agreement, call Rosenbaum & Taylor to get started.

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