{"id":171945,"date":"2022-07-13T01:38:45","date_gmt":"2022-07-13T00:38:45","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=171945"},"modified":"2023-05-22T00:07:46","modified_gmt":"2023-05-21T23:07:46","slug":"negotiating-business-contracts","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/negotiating-business-contracts\/","title":{"rendered":"Top Tips for Negotiating Business Contracts in the UK"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Negotiating business contracts can be complicated, time-consuming and, at times, intimidating. Many factors come into play when negotiating a contract, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the size, risk appetite and bargaining power of the respective parties;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">whether they have an existing relationship; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the importance of the transaction.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">There are typically legal and commercial considerations to evaluate when entering into negotiations. Although contract negotiations can be tiresome, they are critical to mitigating risk. This article explores key ways to negotiate contracts successfully.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">1. Narrow the Issues<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Although it may be tempting to immediately meet with the other side when you receive their <a href=\"https:\/\/www.gov.uk\/contracts-finder\">contract<\/a>, it is more prudent to review it from legal and commercial perspectives first. During the review, you and your solicitors can flag any clauses you would like to negotiate. In our experience, doing one or two rounds of negotiations \u2018on the paper\u2019 (i.e. by sending an amended contract between the parties) can help to reduce the number of <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/business-contract-terms\/\"><span style=\"font-weight: 400\">contested items<\/span><\/a><span style=\"font-weight: 400\">. In addition, this process allows the parties to understand one another\u2019s perspectives and concerns.<\/span><\/p>\n<p><span style=\"font-weight: 400\">When proposing amendments to a contract, it is essential to provide reasons to support your <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/mistake-in-contract-law\/\"><span style=\"font-weight: 400\">requested amendments<\/span><\/a><span style=\"font-weight: 400\">, or the other side may reject them. Providing reasons helps the other side to understand the rationale behind the change and either accept it or propose a middle ground.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">2. Preparation is Everything<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Much of the work in negotiating a contract is done in the lead-up to the negotiations. It is critical to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">understand how important the deal is to your business;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">consider your business\u2019 risk profile. For example, whether the nature of the transaction is likely to expose your business to commercial risks; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">learn about the other party (their size, reputation in the market and who will be attending the negotiation).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">It is also essential to familiarise yourself with the contract and to know your business\u2019 position on any outstanding items. <\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">For example, for each outstanding item, you should ideally have a best position, a first fall-back position and a final fall-back position. This allows you to understand how far you can negotiate on specific issues and when to \u2018park\u2019 an issue and take it offline for further internal discussions.\u00a0<\/span><\/p>\n<\/div>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div 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Find Your Style<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Everyone has a different style when <\/span><a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/my-business-is-in-a-dispute\/\"><span style=\"font-weight: 400\">negotiating contacts<\/span><\/a><span style=\"font-weight: 400\">. Some prefer a domineering or combative approach, while others may be more subdued and happy to lead the negotiation. There is no right or wrong approach, and finding the style that works for you is important. Sometimes, you might need to be adaptive and adjust your style, particularly if you have leverage on a transaction.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Our recommendations, regardless of your style, are to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">open the negotiation with some friendly small talk to warm the room. Do not be afraid to smile and be friendly. Often being friendly initially can facilitate a more productive and cooperative negotiation;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be firm but respectful. There can be a tendency for people to think being friendly means being viewed as a pushover in a negotiation. That is not the case. It is good to be friendly but to hold your ground on key items, be firm yet respectful in presenting your views on certain items; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">listen and search for common ground. Actively listen to the other side\u2019s reasons for their position instead of simply being defensive. This can often allow you to find a middle ground. It is a good idea to let the other side know you have heard and understood their position and then to respond with your concerns.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Negotiating business contracts successfully takes preparation and experience. It is essential to try to resolve as many issues as possible before having a formal negotiation in person or via teleconference to save everyone\u2019s time. Once you are ready to meet with the other side, it is critical to be prepared, open and willing to hear the other side\u2019s view. Importantly, aim to find ways to compromise.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you need help negotiating business contracts, our experienced <\/span><a href=\"https:\/\/legalvision.co.uk\/contract-lawyers-lp\/\"><span style=\"font-weight: 400\">contract lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our membership. For a low monthly fee, you will have unlimited access to solicitors to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\/\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1657672449623\"><strong class=\"schema-faq-question\"><strong>Do I need a solicitor to negotiate my contracts?<\/strong><\/strong> <p class=\"schema-faq-answer\">It is not necessarily vital to engage a solicitor. However, having a solicitor in a negotiation can be a great resource for larger or riskier transactions, especially those involving complex contracts.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1657672459722\"><strong class=\"schema-faq-question\"><strong>What do I do if I cannot reach an agreement with the other side during a negotiation?<\/strong><\/strong> <p class=\"schema-faq-answer\">Preparing for negotiation with multiple positions will reduce the chances of reaching an impasse. You often will not be able to resolve all items in a negotiation. It is okay to pause the negotiation to allow each party to hold internal discussions before recommencing. However, it is essential to understand when to take a break to avoid conceding items you may not have the authority to decide on.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/171945\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-contracts\/negotiating-business-contracts\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Top Tips for Negotiating Business Contracts in the UK\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Negotiating business contracts can be complicated, time-consuming and, at times, intimidating. Many factors come into play when negotiating a contract, including: the size, risk appetite and bargaining power of the respective parties; whether they have an existing relationship; and\u00a0 the importance of the transaction.\u00a0 There are typically legal and commercial considerations to evaluate when entering<a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/negotiating-business-contracts\/\">Continue reading <span class=\"sr-only\">&#8220;Top Tips for Negotiating Business Contracts in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13207,"featured_media":3132,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"879,2802,1004,2218,2166,2346","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[37],"tags":[20,21,359,393,447],"class_list":["post-171945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-medium-business","tag-business-contract","tag-negotiation","tag-contract-amendment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Top Tips for Negotiating Business Contracts in England | LegalVision UK<\/title>\n<meta name=\"description\" content=\"Negotiating business contracts can be complicated and time-consuming. 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