Let's talk contract negotiation – it can be tough, time-consuming, and outright disappointing when a deal gets delayed or falls apart because the process didn't go well. We've all been there, and we feel you.
But contrary to popular belief, contract negotiation doesn't have to be painful. It's actually a great opportunity for future business partners to meet in the middle and get what they need. To make the most of this process and take it from painful to pleasant (or at the very least, productive), always keep the goals of contract negotiation top of mind.
On the surface, it may seem like the goal of contract negotiation is to hold out until all your terms are met. If you’re focused on protecting the business, this can result in a lot of back and forth while you push for the clauses, language, and terms you want, redlining a contract until it meets your standards.
Unfortunately, if all your negotiations stall out, there might not be a business to protect. Meeting your negotiating party halfway without ceding critical ground embodies the real intent of contract negotiation — to arrive at a deal that serves each party and enables strong business partnerships.
Sure, this means there’s a chance the contract won’t have the exact language or terms desired, but compromising builds favor with the customer and greases the wheels of future upsells and renewals.
Contract negotiation doesn’t have to be all or nothing. Here are some ways to empower better business partnerships during and after contract negotiations.
Naturally, there are contract terms that you can’t and won’t negotiate. But this doesn’t have to be the case for the entire contract, every contract. Decide what terms are critical to your business, and work with your partners to figure out what the give and take will be. Positive negotiations lead to fruitful business partnerships.
Sometimes, even the best lawyers can get caught up in writing the perfect clause, but the result ends up being language that’s confusing or convoluted. Instead of aiming for perfection, focus on making your terms clear. This leaves less room for miscommunication and ends up protecting your business in the long run.
Even the most amicable contract negotiations can eat up a lot of legal’s time and draw out deals, especially for high-value agreements. Contract lifecycle management (CLM) technology, for example, can improve contract negotiations by allowing you to redline contracts within an all-in-one platform so you never lose track of negotiations.
Check out Laura Frederick on Cockpit Counsel for more tips on mastering contract negotiation.
Contract negotiation can be a beast, but it doesn’t have to be a burden. By following best practices and thinking of your signer as a partner, you can ease the stress of contract negotiations and close deals faster.