It’s easy to disregard the important step of contract negotiation. When you’re in business, the rush to close the deal is often the most pressing point. You don’t want to lose out on an agreement, so you skip negotiations and sign the contract. Unfortunately, this could lock you into a bad deal for you and your company. Contract negotiation requires patience, skill, and an understanding of Connecticut business law. The team at Aeton Law Partners is ready to assist.
What happens if you fail to negotiate your contract?
Many businesses see contract negotiations as an unnecessary roadblock. The pressure to close the deal at any cost can therefore lead to foregoing negotiations. Surprisingly, some businesses believe – for whatever reason – it would be improper to negotiate a contract. Or they may think they cannot do so.
However, if you execute the contract without having negotiated it, you could be signing on to a world of problems. These may include:
- Higher operating costs
- Lower profits
- Less efficient business relationships
- Abnormally high or unreasonable damages in case of a breach
- Little chance for legal recourse if the other party breaches
- Personal liability because the contract lacked protections
These are only the start of the issues you could be facing because of a poorly negotiated contract. But retaining a seasoned Connecticut business attorney can make a difference.
How to effectively negotiate a business contract
Considering all of these issues, here are some basic steps to negotiating your business contract:
First, once the agreement is reached, draw up a simple outline of broad, key terms. This will be exchanged with the other parties to ensure everyone is on the same page. The outline will facilitate the development of more detailed terms that will eventually become the contract.
Second, determine your objectives in entering this deal. What are the goals of your business? Why does it want the agreement? What is your personal expected outcome? What concerns are there for you and the business? Write down the pros, cons, and risks of entering the deal and working with the other parties.
Third, be ready to defend your position when it comes to potentially contested terms. Negotiations always entail some degree of give and take. But you have to be able to argue for the terms you want. What evidence and arguments do you have in your favor? What evidence or arguments might the other parties have in their favor? Understanding everyone’s interest in the deal will prepare you for the formal negotiation phase.
Finally, before you enter those formal negotiations, retain a knowledgeable business law attorney.
Aeton Law is here to serve your business
Our business law attorneys understand the language of business. We know what should be included in the contract and how to get it in there. There are some issues you may not have considered yet, but we have you covered. That’s the level of comprehensive service you can expect from our business team.
What has to be included to make the agreement enforceable? How can it be written to better protect your rights? Are there terms that cannot be included as against public policy? These and other important questions are essential to every agreement, and we know the answers.
From start to finish, we will have your best interests in mind. That means taking the time to understand your goals and concerns. It also means answering any questions you have and explaining your obligations under the contract.
Dedicated Counsel You Can Rely On
Your Connecticut business deserves responsive, effective, and reliable legal representation. You deserve the attorneys of Aeton Law Partners. If you are contemplating a contract, let us negotiate and draft it for you. We can also counsel your business in other areas as well. Give us a call today