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CONTRACT NEGOTIATION

Indonesian Contract Negotiation Attorneys

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with a lawyer. For specific technical or legal advice on the information provided and related topics, please contact the attorneys at Amir Hamzah, SH & Rekan Law Office.

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Contract negotiation is the process of give and take the parties go through to reach an agreement. Or, as they often say in business, "you don't get what you deserve; you get what you negotiate." 

Often, contract negotiations have two distinct stages: negotiation of the basic business terms followed by negotiation of the legal terms. In a typical contract negotiation, each party compromises on some issues in order to get what it really wants. Although there are always lots of details to work out, most contract negotiations boil down to two essential factors: risks and revenues.


If you own or run a business, you may have experienced the following situation. Your company believes it has reached an agreement with another company on the business terms of a deal. Both sides bring in their lawyers to hammer out the details -- and as soon as the lawyers get involved, everything goes down the tubes.
One key to the outcome of contract negotiation is the relative bargaining positions of the parties. A party with vastly superior bargaining power -- for example, a landlord operating during a housing shortage or an employer that is hiring during a recession -- doesn't have to negotiate. Instead, these often present a contract and tell the weaker party to "take it or leave it." In cases of contracts of adhesion -- form contracts that can't be negotiated -- this can sometimes backfire, because the less-advantaged party may later argue that a provision is unfair or unconscionable.

IF YOU ARE IN NEED OF LEGAL SERVICES INVOLVING THE NEGOTIATING, DRAFTING AND/OR LITIGATING OF CONTRACTUAL MATTERS, CONTACT THE ATTORNEYS AT AHR LAW OFFICE.