– A mistake as small as misplacing a “,” can cost thousands of dollars later.
• Contract negotiations are about ensuring that the two parties set out in a clear and an enforceable manner the elements that have been agreed.
• Once a contract is signed, further negotiations are not permitted.
What should be Negotiated
• Negotiations are about whether or not to include sections, paragraphs, subparagraphs, or clauses.
• Negotiations are about the use of specific words and the punctuation of each clause.
• All elements that have been previously negotiated will be the subject of negotiation in the contract.
Language
• The contract negotiations should be in one language in order to be consistent.
Conclusion
• The most important fact to remember
– Contract negotiations are about precision and clarity. They are designed to ensure there are no ambiguities or misunderstandings.
Sequence for Opening Contract Negotiations
• The Buyer will send out a draft contract after receiving, analyzing and negotiating the seller’s offer.
• The seller will receive the contract and thereafter the two sides will meet to negotiate the contents.
Understanding the contract
• A contract is a set of short paragraphs or sentences called articles or clauses.
• The structure of a contract follows established principles or rules.
• After receiving an initial draft contract, both sides will seek management direction on what has to be negotiated.
• Negotiators will be given directions on what concessions may bess everyone is fluent in the
language of the contract) – Relevant technology and management personnel
Beginning the negotiations
Negotiations of Contracts
Getting agreement on what was agreed
Introduction
• Negotiations, if successful, end in a contract and the contract is subject to negotiations.
• If the contract is to be prepared in two languages, the priority of one language needs to be stated.
Follow up
• Always ensure that everyone is up to date after each negotiating session so that any mistakes or errors of omission can be corrected at the next meeting.
Preparations for Negotiations
• Contract negotiations are about positioning and clarification.
• The resources necessary to negotiate a contract must be on hand: