By Suraj A. Vyas | 6 min read

We have a special treat today for SAV Law Firm Blog readers! Our friends over at Kira Systems have another incredibly useful article we just had to share with all of you. It speaks on the topic of contract negotiation. This is something our firms excels at, but it’s also something we believe is crucial for each every individual and business to learn.

Good contract negotiation requires a clear understanding of a company’s key objectives in making a contract. Of course, this is easier said than done. After all, contracts can involve a transaction, as is the case in a sale, or a relationship, like employment. But whatever type of contract you’re negotiating, it’s crucial that you know what you want, what the other party wants, and know both you and the other party’s BATNAs (Best Alternative To a Negotiated Agreement).

BATNAs are like a plan B that can be turned to in case your negotiations are unsuccessful, and it’s helpful if you enter negotiations with at least two or three BATNAs for each of your key objectives. Do some research to understand what the other party’s alternatives might be, and focus most closely on your top priorities. Remember, it’s better to get what you want on a couple of your top priorities than to get what you asked for on the objectives that matter least. For more insight on leveraging negotiations with BATNAs, see the graphic below.