How To Negotiate or Write Contracts To Protect Your Business

Contracts are agreements between two parties. You can use them in your business to protect the company and resolve disputes. There is no guarantee to avoid lawsuits, but having a signed contract is a layer of protection. Sometimes you can negotiate better terms in another party’s contract, and other times you may want to write your own from scratch.

Negotiating a Contract

Sometimes a counterparty has a ready-made contract for you to sign. Until it’s signed, a contract can always be changed. There are a few steps to take when you negotiate a contract so that it benefits your business.

• Research. Figure out what the other party wants in advance. Learn what their priorities are. Consult lawyers on contract law.

• Prepare. Anticipate what the other party will bring up at the meeting. Be able to answer questions or address concerns.

• Prioritize. Write down what's most important for your company, what you’re trying to get out of the discussion, and what your ultimate goals are.

• Ask questions. Try to understand the other party’s concerns and come to an agreement that benefits both parties.

• Take your time. Don’t expect to reach a mutual agreement right away, and don’t rush things.

Creating Your Contracts

You can always write a contract. Just make sure to run it by your lawyer before using it as a legal document.

There are a few things the document should have:

• Names of all parties. Specify the names, addresses, and contact information of all parties.

• Dollar figures. Be precise when calculating the exact values involved in the agreement, such as rents due or the price of goods or services.

• Rights. Outline everything you reserve the right to do, such as sue for breach of contract in your local jurisdiction.

• Obligations. Include everything you’re obligated to do and everything the other party is obligated to do, such as delivering a product or service and paying on time.

• Termination clause. Make sure everyone knows when the agreement ends — for instance after service was completed or after an amount of time has passed.

• Disputes. How and where are disputes going to be resolved? You may want to put in an arbitration clause to try to avoid going to court.

• Other clauses. Include anything else your lawyer recommends for maximum protection.

Helpful Tools

Some tools can help you to create the contract document. For instance,  a free online tool to extract PDF pages can present, edit, and modify a contract document. If you want to reuse parts of a contract in a new one, the editor can let you select and extract specific sections of the PDF to export as a whole new document. To do that, simply select the relevant pages, and export them to form a new contract.

Contracts Are Important

Strong, well-researched, and well-written contracts are essential to your success in business. They protect you, your company, and your company’s assets if disagreements arise. You can negotiate a contract or write one on your own. For more information on more business matters about contracts or beyond, visit and join your local chamber of commerce today.