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Avoid Unintended Revelations When Negotiating Contracts

If you sell products or services to other businesses, you're no stranger to contract negotiations. During the negotiations process, compromises must be made. These compromises usually require a concession from one or both parties. If your negotiations don't seem to go the way you hope, it may be that you have been revealing too much to the counterparty. Avoid disclosing more than you have to if you want to get a good deal. 

Predetermine Your Negotiables 

Before anything else, determine your negotiables. Create a ranked priority list of things you hope to accomplish during contract negotiations. Assign a minimum to each priority.

Your minimums will be the lowest you can accept during negotiations for the deal to remain profitable. Ideally, you'll receive more than your minimums, but this doesn't always happen. You may also find it helpful to note your starting point beside each priority. Your starting point should be above your minimums, with enough room for haggling. However, be careful that your starting point isn't so high that the counterparty doesn't negotiate but, instead, declines your offer outright. 

Avoid Revealing Anything 

Avoid revealing anything that isn't necessary. For example, you should never disclose your minimums or your priorities to the counterparty. If you do, they'll have the upper hand because they already know how low you're willing to go. The other party will do everything they can to negotiate as close to those minimums as possible. This can be especially difficult if the other party hasn't revealed their weaknesses but knows yours.

Body Language Is the Key 

You may find it easy to avoid saying certain things, but this isn't enough. You should also have a thorough understanding of how your body language may tell the counterparty things. For example, the other party may suspect they're nearing your minimum if you appear nervous after a counteroffer. Likewise, when a suggestion is made or a question asked, the way you react may tell more than your words.

Consider taking a course on body language. Besides learning how to control what you reveal, you could learn to surmise what the counterparty is saying with their body language. 

Contract Presentation Matters 

How the contract is presented to the counterparty matters. You can use body language to help your oral presentation. However, the contract should be appealing on its own. Details are important, especially when it comes to the most important terms and clauses. The contract should also be organized and easy to follow. Simply compress a PDF online to help you achieve these goals.

Another idea is to incorporate colorology into your contract. Colorology is the idea that certain colors will evoke specific emotions in a person. You can use this ideal for any bars, graphs, titles, or other visual data included in your contract. You can learn more about the meanings of different colors here

Reveal Nothing Unnecessarily in Contract Negotiations

You risk showing the other party your weaknesses, which can then be used against you, when you reveal unnecessary information during negotiations.

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