The article gives a detailed information about the business
negotiations and the various other types and procedures related to it. Business
negotiation comes under the negotiation types, it can be seen in business
organizations where as to how the negotiation will help in business firms and
how to negotiate with your counterpart in an organization regarding any business
project or any business-related activities in the organizations as such.
subject as to how the contracts which are also been included while negotiating
in the business are legally binding and how they have a place in the business
negotiation is been discussed in further article.
Business negotiation is where both are involved and both of them have their own
aims, goals and viewpoints to hence settle the disputes in between both the
parties regarding the business or organization. Basically, when one lookup for
the exact meaning in between the parties regarding the business negotiation then
one finds that the parties involved in the meeting are always either the
corporate entities, vendors or else the employees of the companies.
What Is A Business Negotiator?
- A business negotiator is a professional negotiator who helps the parties
to come to an acceptable business solution with their stakeholders or as the
case may be. The business negotiator is the one who settles the disputes
amongst the parties regarding the business issues and disputes with his
skills, and knowledge about the business negotiation.
- Talking about the skills, these can be in two ways, firstly, as informal
day-to-day transactions and secondly, the formal transactions in between the
companies, regarding the sale, expenditure, lease, and other legal contracts
- A professional business negotiator has all of the abovesaid skills as well
he/she is a good negotiator.
What Are Business Negotiations?
- Setting aside the definition as mentioned earlier, business negotiations
are far more beyond than one can think, especially while negotiating with a
company the other party might give various alternatives which will be the
best for both the company, but there may be some alternatives which may not
fit best for the other party, due to which there may be some exchange of
heated arguments. Then, over here even if the firms are deeply rooted but
there will be no way around for the party with the alternatives so MESO's are the best alternatives which
can be given as the same to the other party for meeting the best possible
outcome for both the parties.
- In most of the Business Negotiations, bargaining is the hardest, because
giving away a single penny more than which is required away as assuming that
the other party or counterpart may be satisfied is not an approach. Figuring
out, what are all the easiest and rarest of approach so that creative
solutions can be found out for the problems is way necessary. For business
negotiations arriving at a solution which shows up mutual benefit for both
the parties and the best suited alternatives which mutually the parties
agree with is too much essential.
What Are The Characteristics Of Negotiation Skills?
- The characteristics which are required for negotiation is at initially
to listen carefully. While you are listening you get to know about the other
person's point of view which will further lead to better bond in the between
the company and will also clear the doubts people have in their minds.
Through listening you also as a hosting negotiator or maybe professional or
a negotiator will get to know about the frequent asked question in the
meeting which will thus help you as a negotiator of the company in the next
meeting of the same subject-matter as well.
- Developing a great interpersonal skill will exactly help you to develop
skills for negotiating with the people around you as well. The interpersonal
skills depend on your entire personality as well as like how as a person
your attitude you keep towards people or to a person or to a particular
matter or a thing as well.
- The next important skill as in negotiation is to be specific and clear
about the techniques that you are going to follow in a particular meeting.
Attitude says a lot of things about how a person is so whenever negotiating
a meeting it is very important to develop a right kind of attitude and also
to adapt such an attitude which will be deem fit to be in a meeting while
you are as a negotiator in the meeting, attitude towards a subject-matter
and to in a meeting will help you reach your goal easily as because with a
right attitude more people will be inclined to your work. They will help you
reach your goal.
- The ability to express thoughts verbally, good communication skills,
listening skills, judgement, and general intelligence rational kind of,
patience, decisiveness, are more of the skills which adds up to the list of
- These all skills will thus help you to be aware about the other person
style and also about the process which the other person might follow during
the negotiation process and these skills will also will let you get to know,
think, and talk flexibly about the possible areas in the negotiation skills.
- Since, we are talking about the business negotiation it is also very
important under this subject to note about the contracts that take place in
the companies widely. Business negotiation theory considers many topics
about the contract into this which generally many companies come under an
agreement where certain valid and legally enforceable clauses are lastly to
the agreement are written, which through mutual consent and agreement the
companies sign it, which after passing the second stage of the negotiation
theory becomes a contract and hence becomes valid in the eyes of law.
- Before to get into the contracts under business negotiation, let us see
what actually are these stages under negotiation where the agreement turns
into a valid contract and what happens when it doesn't?
So, under the Indian Contract Act, 1872 it clearly lays down the steps where the
agreement if void cannot turn into the contract and if enforceable in the eyes
of law it will be valid and hence it will turn into an enforceable contract.
The three stages under the negotiation skills are:
- Under this stage the negotiation contract will be initially just an
agreement and will neither be binding on any of the parties, so, under this
stage the negotiator will initially according to the rules mention in the
said act and of the negotiator's act will make the party aware about their
agreement regarding the dispute for which they have taken the negotiation
process to resolve it.
- The agreement will be void until it is enforceable under the law, after
passing this stage.
- But during this stage only the negotiation agreement turns void as
because the negotiation agreements are not legally binding on either of the
parties in the disputes, they can take their case to the court if not
satisfied with the decision and this is why negotiation agreements are not
legally binding in India as of now.
Post agreement stage:
- Under this stage the actual agreement whether it is any kind of
agreement except the negotiation agreement will be not binding but will be a
proper agreement with all the clauses and facts and issues containing in it
of the disputes in between the parties.
- This agreement will be given to both the parties and since the parties
will decide whether to agree upon the clauses, terms and agreement as given
in the agreement by the opposite party.
- Under this stage the agreement is already been seen as an enforceable
agreement which is valid and not taken as void agreement in the eyes of
- The agreement when comes to this stage will be turned into a contract
which will be legal but not binding on between either of the parties.
- Now, the contract will be signed through mutual consent and agreement
basis by both the parties and both the parties in front of the negotiator
will agree to all the terms and conditions and clauses as per in the
- Since it is a contract now the parties and that both the parties have
agreed upon the terms and conditions mutually it will taken as a mutual
agreement between the parties.
- If in the future any of the parties disobeys or violates any of
the terms or clauses therein mentioned then the aggrieved party has the full
right to take the matter Court.
Now, looking up to the procedures under the business negotiation for contracts
and how it is applicable to the limit and the sustainability of the Business
What Is Contract Negotiation
- Contract negotiation is basically, a pre-determined approach wherein
there is a certain goals or action which are to be achieved either by a
company or firm with the help of the best strategies of negotiation, this
specific goal or objective which is yet to be achieved are generally also
with the help of other party or parties, potentially to find and make an
agreement or contract in a negotiation with another party/parties, for
accomplishment of it.
What Is A Contract Negotiator For Hire?
- There are many people, companies and firms who do not want to take up
the negotiation process, because they don't enjoy it since they are always
in a rush of things so that they will be over the dispute, this may rarely
help some of them for short term, but looking at it towards a long-term goal
which is to be achieved so it really is not worth it.
- If such disputes happen in between the parties, they rather get over it,
which may not help them as because the contracts are signed quickly and are
thus tend to be lousy.
- Getting professional help, at instance whenever there is a situation
regarding such disputes in company will always have a positive outcome and
can come to a great help, this will also lead to the clearance and worth of
the final product of the company.
- Preparing a term-sheets may help to get in more incline with your work
on the project and thus will also let you know about the previous data's
regarding your project and also the statues of it, preparing the term sheets
can get in to help for at large, and this is how you will get to know more
about how much profit you have gained and what made you stand by the loss in
the business, as to what are the statistical data which shows the loss
incurred, profit which is gained and sales and expenditure of the previous
years and the current year also. This will address to big picture items into
Essential Of Business Contracts
There are generally six must require , essential elements of the business
contracts for a contract to be valid (enforceable by law).
every contract must include a specific offer which is to be made under a
contract to get it valid because, the offer here is the most important thing
in the contract, because under this the parties get into an agreement and
will therein accept the terms and conditions or will reject it. Making an
offer by either of the party to the other party is where they are laying
down their goals and objectives through the offer making.
whenever any of the party makes an offer regarding the business- matters of
the company or else of the partnerships , it is on their counterpart whether
to accept the said offer or no. whenever the other party accept the specific
offer by their counterpart means acceptance of their offer and that they
agree upon the issue on the same way.
taking into consideration about any of the parties' ideas, thoughts and
questions regarding the project or the business encourages the other party
to make an effort into the business- ideas and projects and thus get them
into a win-win situation where they think that they have shared same
positive in the meeting which will thus help you to achieve your company's
goal and making a strong bond with the other company in partnership
- Mutual consent:
consent is very important. But the consent shouldn't be from only one party
like both the parties should mutually agree upon any of dispute's resolution
or the terms and conditions laid down for the same. Mutual consent means
that both the parties have agreed upon the said thing of the business and
that this matter will be resolved any way further, but, neither of the
parties should be coerced or forced for signing of the contract , only then
it will taken as creating a binding agreement if any of the parties does not
take it serious in the signing of the contract only then it will not be a
Both parties must be of "sound mind" to comprehend the seriousness of the
situation and understand what is required. This definition requires that
neither party be minors, both must be sober (not under the influence of
drugs or alcohol when signing the contract), and neither can be mentally
deficient. If one party is not competent the contract is not valid and the
non-competent party can disavow (ignore) the contract.
- Legal purpose:
The contract must be for a legal purpose. It cannot be for something
illegal, like selling drugs or prostitution. Remember that it is not illegal
to enter into a contract that doesn't have all of these essential items; it
just means that if an essential is missing the contract cannot be enforced
by a court.
When A Contract Must Be In Writing
- Contracts that involve the sale of goods, agreements relating to
mortgage, sale, lease, etc. must be attested by the witnesses present and
should be signed by the parties and to be registered by the parties in order
to make it binding on law.
- Although other types of contracts may be oral, it is advisable to get
it in writing to insure both parties understand their obligations. If
court enforcement is required, a written contract shows the parties'
obligations and avoids a he said, she said dispute.
- There are many national and international and governmental contracts as
well which are taken into the business negotiation contract where these
contracts are made with mutual consideration and consent of both the parties
What Is Effective Negotiation
- Effective negotiation is a method into which people settle out their
differences in between them but without going through any of the heated
discussions or else without any of the arguments in the negotiation process.
- When there is any kind of disagreements in between the parties, either
of the parties here does not get into a debate or fight with other regarding
the disagreement they understandably handle the matter and take the
situation calmly and thereafter it is also easier for both the parties to
get to a mutual point to agree upon and get their issue solved. This may be
the best possible outcome for both the parties to achieve their goals of
their positions or perhaps their organization that they represent to.
Best Possible Strategies In Business Negotiation
The two of the most common strategies are:
- Best Alternative to a Negotiated Agreement (BATNA)
- Worst Alternative to a Negotiated Agreement (WATNA)
- Walk Away Price (WAP).
You should be the only one to know your position in the negotiations. When
negotiators know about the weak position of their counterparts, they will
instantly deduce that their opponents are desperate and will negotiate from that
It also includes collecting information about the problems to be solved in the
negotiation. Following the negotiation, both parties should try to revive
relationships that may have been harmed during the negotiation process.
Written By Presha Naik
, a student, from S.N.D.T Law College,