The topic is important because it involves creating relations, especially in business. It is evaluating and coming to terms with every party’s views; thus, it comprises of the common agreement through a particular sequence. The process is a matter of negotiation, and each individual tries to negotiate their way to the terms that favor their interest significantly. It must engage communication among both parties with various essential contract factors, including the benefits (revenues) and challenges (risks).
In this topic, negotiable contracts can be identified in different fields. For example, the fields that involve specific processes in contract negotiation include employment contracts, real estate leases, financial contracts, and manufacturer warranties. According to Roberts (2020), negotiation is an important aspect of any form of transaction because once the process comes to the final stage, it legally bounds all the parties concerned. Everyone is made liable immediately; they come terms with the contract necessities.
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However, for complete contract negotiation, the individuals concerned must go through three fundamental steps. The three steps include.
Step 1: The most important step in the contract negotiation process is preparation. One must have a clue about the contract before engaging in one (Roberts, 2020). For example, when engaging in transaction deal like supply contract, one must prepare about five major issues, such as identifying the issues one needs to negotiate about, have information about the contract, one must classify the contract to identify their limit, prepare for the meeting and get ready to negotiate.
Step 2: The second step of contract negotiation is always having a proper meeting with all the parties. For example, as a supplier, before meeting for negotiation, one needs proper preparation. It requires that one becomes professional, be in a position of controlling their emotions, and must always be positive.
Step 3: Analysis and summary of all points among the parties is important since it means that all individuals have agreed as far as the requirements of the contracts are concerned (Roberts, 2020). The points to be summarized in this step can be identified as payment terms, terms for the contract, the commencement of the contract, and contract intensity.
In conclusion, the contract negotiation process is important for maintaining issues of integrity, transparency, among others. The parties get contented and are willing to take part in participating in the invaluable business. A good negotiating process may lead to good relations, which may lead to a positive outcome at the final stage of the contract.
References
Roberts, L. W. (2020). How to Evaluate a Letter of Offer or Contract. In Roberts Academic Medicine Handbook (pp. 45-53). Springer, Cham.
