What is Contract Negotiation?
A contract negotiation can be the source of strength in a relationship or a pivot upon which negotiated agreements fall apart
It can be tempting to rush through a contract negotiation process, file the document away quickly, and roll up your sleeves. But the best negotiators pay attention to the details.
When business negotiators don’t devote enough attention to ensuring that a contract negotiation leads to a sound long-term deal, the unfortunately common outcomes are broken contracts, damaged relationships, and lawsuits.
This may be especially true in labor relations where there are rarely clear cut or mutually agreed upon notions of what a fair salary and benefits package would be. Nor is a labor contract negotiation usually limited to questions of compensation. Working conditions, safety concerns or questions about worker rights, regularly surface and must be resolved.
Too often, we approach contract negotiation with a narrow mindset, assuming we will be fighting with our counterpart to grab as much as we can. Rather than looking for ways to expand the pie, we focus on carving it up. Rather than capitalizing on our different preferences, we accept impasse. By contrast, when parties can trade on their preferences across different issues, they reduce the need to haggle over price and percentages.
Don’t make another bad deal. In business, the stakes are too high and the consequences are too severe to allow a bad deal to pass your desk.
To find out more and discover how to boost your power at the bargaining table, download a complimentary copy of our special report, Business Negotiation Strategies: How to Negotiate Better Business Deals, from the Program on Negotiation at Harvard Law School right now!
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Negotiations over the terms and conditions of a binding legal agreement between two or more parties.
The following items are tagged contract negotiation: