Contract Negotiating Tips for Maryland Small Businesses

Small businesses constantly negotiate and enter into contracts, including leases, purchase orders, employee agreements, customer engagement letters and asset purchase agreements.   In the vast majority of cases, owners often focus primarily - if not exclusively - on price, quantity and time of performance clauses.  Unfortunately, doing so neglects to address the crucial remaining terms of the contract which allocate risk and transfer liability between the parties.

Ensuring that a business contract satisfies the goals and purpose intended, it must both avoid crucial omissions and use precise language so as to leave little room for future disputes over terms.  Business owners should enter into contract negotiations with clear objectives. It is important to be aware of relevant laws, facts, and figures.  Finally, they should determine in advance what concessions are really needed from the other party, and also decide in what areas to compromise.

For further discussion of this topic, please read the article, "How can my small business minimize risk in contract negotiation?".