Second Opinions: How Caution and Council Can Prevent a Bad Deal
In a tense contract negotiation, it's easy to focus on closing the deal above everything else. When negotiating that all-important win, it's essential that you consider the possible consequences of a bad deal. An agreement that seems cheaper in the short term can become extraordinarily expensive if it ends in a lawsuit or makes unreasonable demands on your business.
You may feel pressured to accept a negative deal or confused by the terms of a contract. Taking the extra time to consider all factors and consult experts before the contract is signed could be the difference between a deal and a disaster.
Know Your Value
There are many good reasons you may choose to renegotiate or even walk away from a contract. A hastily accepted bad deal could stick your business with unseen costs that reduce your profits. You may be locked into conditions that overwork or endanger your employees, leading to resignations. Lawsuits to revise or terminate bad contracts can drain money and time.
You may choose to walk away from an offer for reasons that have nothing to do with price. Over the decades, the owners of luxury brand Hermes have been urged on several occasions to sell or merge with other fashion companies. Hermes is a family-owned company with a reputation for craftsmanship and detail. Multiple Hermes owners have chosen to protect that legacy and walk away from lucrative deals and as a result, Hermes retains a reputation as one of the top choices for royals and celebrities today.
Recruit Legal Help
A contract lawyer can be one of your most valuable allies if you're struggling with negotiations or contract language. They are trained to handle complex legalese, often in ways that are specific to your industry. Lawyers point out terms in a contract that may be harmful to your business, suggest solutions to legal challenges, and ensure that you're treated fairly. Retaining a contract lawyer before signing a contract is far less expensive than a lawsuit afterward.
A lawyer can also help you draft and look over the contracts you write. Contracts are one of the most visible and enduring impressions of your business. It's important that you draft a contract that is enforceable, legally sound and clear. A contract should also look professional and attractive to the reader. You can easily combine PDFs into one file, have your lawyer review the language, and end up with a professional, easy-to-read document that's ready to send.
Make a Better Deal
Foresight during the negotiation process can protect you and your business for years to come. Not every negotiation can be won and it's important to identify and walk away from bad contracts quickly so you can devote your energy to positive deals. Considering the long-term health of your business and recruiting experts who have your best interests in mind can help you do that.
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