In previous articles, I’ve talked about reviewing contracts—making sure you know exactly what’s in them, spotting risks, and asking the right questions before signing.
But reviewing is only half the story.
Once you’ve gone through the contract with a fine-tooth comb, the next step is negotiation. This is where you take everything you learned in the review stage and use it to shape terms that actually work for you.
And here’s the thing: negotiation doesn’t have to be confrontational or stressful, it can be made to feel that way but done well, it’s about clarity, preparation, and collaboration—and it can set the tone for a strong, lasting working relationship.
Here’s how to approach contract negotiation in a way that’s practical, manageable, and gets results.
- From Review to Action: Set Your Priorities
Your contract review helps you understand what matters. Now it’s time to act on it.
Try breaking things down into three categories:
- Your must-haves: Terms you can’t compromise on (e.g., payment terms, liability limits).
- Your nice-to-haves: Clauses you’d like to keep but could adjust if needed.
- Your deal-breakers: Terms so one-sided you’d rather walk away than accept them.
This turns negotiation from a reactive back-and-forth into a structured, strategic conversation.
- Keep It Collaborative
Negotiation works best when it feels like problem-solving together rather than a battle to “win.”
- Ask why, not just what: If the other party insists on a clause, find out why. Their reasoning might reveal a compromise or wording tweak that works for everyone.
- Stay professional: Respectful tone = better outcomes. Always.
- Be clear: Ambiguity causes headaches later. Confirm every agreed change in writing so everyone’s on the same page.
- Use Concessions Wisely
You may have spotted areas in your review where you can compromise—but that doesn’t mean giving things away too soon.
- Plan ahead: Decide where you can be flexible before you start.
- Trade fairly: If you give ground, secure something valuable in return.
- Keep it balanced: A good deal works for both sides. Always confirm concessions in writing to avoid misunderstandings.
- Manage Risk Proactively
The review stage shows you where the risks lie. Negotiation is your chance to address them.
Look closely at:
- Liability & indemnity clauses
- Termination rights if things go wrong
- Payment terms to avoid late or missed payments
If some risks can’t be resolved right away, consider a short-term or one-off agreement before committing to a long-term framework. This lets you test the working relationship first.
And don’t underestimate the value of legal advice at this stage—an experienced legal professional can help you spot hidden risks and strengthen key clauses.
- Wrap It Up Properly
Once negotiations are done, make sure:
- All changes appear in the final version
- You use tracked changes and redlines for clarity
- A short summary of agreed points goes to everyone involved
This simple step avoids confusion and saves time down the line.
Review & Negotiation
Reviewing a contract gives you the knowledge. Negotiating it turns that knowledge into a fair, balanced, and workable agreement.
By preparing well, keeping communication clear, and approaching negotiation as collaboration rather than confrontation, you’ll protect your interests and build stronger business relationships.
If you’d like expert help moving from review to negotiation with confidence, get in touch— I can make the whole process smoother and far less stressful.
Get in touch at www.gracelegal.net or DM me at @grace.legal2025 or contact me via info@gracelegal.net.