Factors to keep in mind when negotiating contracts

On Behalf of | Jan 18, 2019 | Business Law

Whether you rent homes to tenants or you do business with customers or vendors, the more relationships you have, the more likely it is that you’ll have difficulty remembering all the ins and outs of promises you make to them or they extend to you. That’s what it’s important for anyone who runs a Georgia business to always have a contract in place outlining their agreement with them so that their interests are protected.

No factor is too small to include in a contract when you’re drafting it. Even if you think that you and your customer, vendor or tenant are on the same page about an issue, you should still address it in writing in your service agreement or lease with them. By doing so, you minimize your chance of being sued on down the line if one party acts as if the conversation didn’t occur or if they change their point of view on the matter.

You should be relatively selective when including conditional clauses or concessions as part of a contractual agreement. It’s important that you remember that there are many factors such as taxes, changes in zoning regulations and costs of transportation or raw materials that can change quickly. You have very little control over these outside factors. You’ll want to keep this in mind when making concessions.

If you do include conditional clauses in a contract, then it’s important that they’re very specific and that they can’t be misinterpreted. You should also clearly spell out what penalties may exist if a condition isn’t met, if it happens sooner or later than it was promised or if a substitution is necessary.

One of the reasons that negotiation is referred to as an “art” is because it’s not easy to determine what someone’s willing to give up in order to get something more valuable to them in return. A business law attorney who has experience in negotiating contracts will have the necessary skills to help you broker the best deal that protects your Augusta company’s interests.