Presentation on theme: "Negotiations of Contracts Getting agreement on what was agreed."— Presentation transcript:
Negotiations of Contracts Getting agreement on what was agreed
Introduction Negotiations, if successful, end in a contract and the contract is subject to negotiations. 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.
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.
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.
Preparations for Negotiations Contract negotiations are about positioning and clarification. The resources necessary to negotiate a contract must be on hand: –Lawyer –Translator (unless everyone is fluent in the language of the contract) –Relevant technology and management personnel
Beginning the negotiations 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 be made.
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. 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.
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. –A mistake as small as misplacing a “,” can cost thousands of dollars later.