It is inevitable that conflict and disagreement will arise as the differing needs, wants, aims and beliefs of people are brought together.

Negotiation is a process by which compromise or agreement is reached while avoiding argument and dispute.

Poor negotiation can cripple a business just as quickly as losing key customers. 

 

What is Negotiation?

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Negotiation is a process in which two or more parties attempt to reach an amicable agreement.

Negotiations can be used in all fields of law to resolve a dispute. Negotiation proceedings are inexpensive, informal, and involve much less headache than a lawsuit.

Even while a lawsuit is pending, negotiations can take place between the parties to reach a settlement. 

The first step in a settlement is figuring out what you want and need from the negotiation and what you are willing to offer to the opposing party.

Once the parties have been informed of each parties' wants and needs, the parties will proceed to consider if they want to accept, decline or offer a counter-offer.

Usually, the parties will go back and forth and make changes to the original offer until an amicable agreement is reached. When all parties are in agreement, the parties create an agreement or contract that establishes the terms of the agreement. 

 

What Are the Benefits of Negotiation over Litigation?

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Negotiations are always favored over costly litigation.

Negotiations cause less headache and take less time than litigation because negotiation takes far less preparation for both parties.

This saves significant amount of money for both parties as negotiations can be personalized to the parties' needs while a litigation can lead to unpredictable remedies proscribed by the law which may or may not help both parties. 

 

Benefits of Good Negotiation

Good negotiations contribute remarkably to business success as they:

  • Deliver lasting, quality solutions, rather than poor, short-term solutions. Long-lasting solutions are always favored for short-term solutions. Long-lasting solutions will reap greater benefits in the long run.
  • Help you build better relationships. Every business is comprised of relationships. You would want to maintain your great business relationships as you negotiate agreements and contracts. 
  • Maximizing your negotiation leverage. This can be achieved by working hard to develop a stronger value proposition than the opposing party and offering a unique aspect that solves each party's problems that no other solution can.
  • Help you avoid future conflicts and problems. No one wants to deal with problems. The best way to avoid problems that can arise in the future is to deal with the problems before they happen. 
 

How is Negotiation Different from Mediation?

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A negotiation occurs between two or more parties.

In a mediation, a mediator administers the mediation proceedings and works with the parties reach an agreement.

A mediator just makes sure that negotiations move along and continue in a fair way.

 

Do I Need a Lawyer for a Negotiation?

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While negligible negotiations do not require a lawyer, more significant negotiations do require a business attorney to assist you in negotiations.

Business lawyers are trained in negotiations and deliberations.

If you are participating in a negotiation where the benefits and risks are substantial, you should contact an experience business lawyer to ensure a suitable agreement is reached with your best interests in mind.

An experienced business attorney can help businesses and entrepreneurs negotiate better transactions and agreements with your best interests in mind while delivering lasting, quality solutions, rather than short-term solutions. A successful negotiation will help you avoid future legal pitfalls.