We will advise you and draft and negotiate contracts quickly without compromising quality and terms.
Contract Negotiations
Contracts are essential instruments in business transactions, and companies or individuals draft and negotiate contracts very frequently in the course of business.
Contract negotiations can be a time-consuming process, but it is extremely important in the long run.
The followings are some tips and advice on how to draft and negotiate a well-prepared contract that will avoid potential litigation in the future.
Prior to the negotiation, set a negotiation goal or objective before meeting the other party
Doing some research and getting familiar with relevant laws, figures and facts would help you better understand what you would like to achieve and what areas you would like to compromise in the negotiation.
Being prepared is crucial to a smooth contract negotiation process.
Build trust between the two parties during the negotiation
Listening to the other party and showing understanding is paramount to achieve mutual trust.
Paraphrase some of the other party’s key statements to ensure that you understand the points while simultaneously letting them know that you are actively listening to their concerns.
Evaluate the situation when a conflict arises
The worst way to deal with conflicts is to strike right back and counter attack the other party.
Not only will it ruin relationships, but it will also stop you from advancing your interests.
The best approach to solve the problem is to detach yourself and analyze the situation objectively as if you were a third party.
Obtain information by asking open-ended questions
Open-ended questions will keep the other side off guard and usually lead the other side to help you rather than compete with you in the negotiation.
Asking questions is also a non-confrontational way to make a point. Sometimes a question may even lead the other side to adopt your unexpressed point of view as their own.
Here is an article with some other great negotiation tactics to consider.
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Contract Drafting
Contracts are complicated legal documents. Here are some tips that you may bear in mind when drafting a contract.
1. A well-drafted contract should be easy to understand.
Written in plain English without legal jargon. Each party is able to understand its rights and obligations stipulated in the contract thoroughly.
2. A user-friendly contract should be concise and not visually overwhelming.
Sentences should be short to avoid unnecessary complexity and ambiguity.
Use default terms to cover subjects, as many of defaults at law are for the benefit of the buyer of goods or services. This will keep the contract simple and easy to negotiate.
3. A contract should be accurate, precise and less likely to be misunderstood.
Make sure all party names are accurate. Include their business titles if applicable.
Define all important terms to reduce the likelihood of misunderstandings.
The contract should also be consistent in terms of its tone, grammar, word usage, and abbreviations.
4. A contract should be easy to amend.
Once the Master Agreement is negotiated, it should be easy for both parties to add contracts for specific products and types of licenses without having to renegotiate complex legal terms.
Partner with an Expert Negotiator
Due to the complex nature of business contracts, we highly recommend business owners to seek legal advice before entering in a contract negotiation.
If you would like to find out more information on contract drafting and negotiation, talk to one of our highly skilled Surrey BC negotiators.
Hire an expert contract negotiator.
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