Free Essay on Conducting Contract Negotiations

A contract is an agreement between two or more parties. The critical components of a contract include contracting parties, a lawful object, a consideration, and the involved parties' consent (Steinberger, 2007). Contract negotiations are discussions between the two teams. The parties engaged in deliberations seek to obtain the most favorable terms that can serve their interests. The negotiating parties have to make compromises to arrive at a final agreement. This allows the contracting members to come up with terms of the engagement. Thus, proper negotiation skills are necessary for a compelling deal. This paper, therefore, seeks to discuss the essential stages of a good negotiation contract.

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The negotiation process begins with member's preparation. The parties first identify the objective of entering into a contract. They examine the interests and options availed by pursuing a contractual agreement. Preparation for negotiation entails the organization of information. It enables the parties to evaluate their goals and desired outcomes, and determine their least acceptable terms. During the preparation stage, parties assess the strengths and risks of undertaking the contract ("Negotiation Stages Introduction," n.d). They take into account the gains or losses of the agreement.

Negotiation begins by engaging members of the other side through the exchange of information. At this stage, both parties share information and examine the options offered by each team. They table what they need or expect from each other. Exchange of information allows either party to make critical assessments about the interests of the other. Establishing a good rapport is essential for proper negotiations (Stolz, n.d). Parties evaluate each other's dependability and competency. Through the information shared, the members can assess whether the contracting party's interests align with their own.

Bargaining kicks off once the members are satisfied with the shared information. The discussions at this stage involve a give and take situation. It entails proving one's value to the other team in order to secure favorable terms. The bargaining stage determines the long-term relationship and the outcome of a negotiation process. A productive bargaining experience requires both parties to make compromises to satisfy their interests ("Negotiation Stages Introduction," n.d). The goal of this stage is to arrive at terms that are satisfactory to the contracting parties. Proper communication and interpersonal skills make the bargaining process easy.

After resolving all issues in the bargaining stage, the negotiation process comes to an end by finalizing the discussed agreement. At this phase, the parties review and summarize the agreed terms. If in agreement, the discussions on the next action plans take place. This is to ensure that both parties show commitment to executing the contract as agreed. Approaches such as writing down the agreement occur as negotiations come to an end. The signing of a contractual agreement is the most common proof that the deal is binding (Stolz, n.d). Appreciation for participation in negotiations marks the end of the process. Both parties are obligated to undertake their roles as agreed. The contracting parties have to meet the goals assigned to them. Failure to honor the agreements violates the contract.

In conclusion, contract negotiations play an essential role in creating lasting relationships in business and management. The process involved in a negotiating contract includes preparation, information sharing, bargaining, concluding, and implementation. The interactions enable each party to determine how well it can work with the other. Contract negotiations define the terms and conditions on which business relationships are built. Parties enter into contracts with the aim of gaining from the transaction. Thus, the primary purpose of negotiations is to develop an agreement that suits the needs of the contracting parties.

References

"Negotiation Stages Introduction." (n.d). Watershed Associates. Retrieved from www.watershedassociates.com/learning-center-item/negotiation-stages-introduction.html

Steinberger, J. (2007, February 28). Is this contract valid? The Entrepreneur. Retrieved from www.entrepreneur.com/article/175238

Stolz, L. (n.d). Negotiation Strategies. BIO. Retrieved from www.bio.org/sites/default/files/Negotiation%20Strategies_Lesley%20Stolz.pdf