Contract negotiation questions our clients actually ask.
What is the difference between contract drafting, contract review, and contract negotiation?
Contract drafting is creating a new agreement from scratch for your specific deal. Contract review is reading and assessing an existing draft, usually from a counterparty, to identify risks before signing. Contract negotiation is the active work after the review: changing the document, exchanging redlines, and reaching agreed terms with the other side. Many engagements use all three: we review the counterparty draft, we negotiate the changes, and where useful, we draft side letters or amendments alongside the main contract.
Is every contract negotiable?
More are negotiable than people assume. Standard-form templates from large companies are rarely as fixed as they appear; procurement teams negotiate them daily. The honest exceptions are high-volume consumer contracts (terms of service on a free app), regulated forms where the wording is prescribed by law, and contracts where the counterparty has genuine pricing power and no incentive to negotiate. Even in those cases, narrow exceptions or carve-outs are often possible. The first question is not “is this negotiable” but “what is worth negotiating.”
What is BATNA in contract negotiation?
BATNA stands for Best Alternative to a Negotiated Agreement, a concept from the Harvard Negotiation Project. It is what you do if this negotiation fails: walk to a different counterparty, accept a worse but acceptable deal, defer the transaction. Knowing your BATNA tells you when a deal is worth taking and when it is not. A weak BATNA forces concessions; a strong BATNA permits firmness. Establishing it clearly is the first thing we do on any negotiation engagement.
Should I negotiate a job offer or employment contract?
Yes, in almost every case. Senior employment offers, in particular, are designed with room to negotiate: compensation structure, equity, sign-on, severance, notice period, non-compete scope, and IP carve-outs for prior or external work are all routinely negotiable. The risk most candidates worry about, that negotiating will sour the offer, is much smaller than the cost of accepting suboptimal terms for the duration of the role.
Should I negotiate a vendor or SaaS contract?
If you are spending more than a few months of revenue with a vendor, yes. Vendor standard terms typically include several clauses that procurement teams negotiate as a matter of course: liability cap structure, data ownership, indemnification, auto-renewal, price escalation, termination for convenience, and exit and data portability. Signing without negotiating these usually means accepting terms that other customers of the same vendor have already pushed back successfully on.
How long does a contract negotiation take?
Standard negotiations (single vendor agreement, employment offer, simple NDA exchange) typically close in 1 to 3 weeks. Complex commercial negotiations (enterprise MSA, shareholders agreement, cross-border deal) take 4 to 12 weeks. M&A and similar high-stakes negotiations can take months. The timeline is driven by counterparty responsiveness more than by drafting effort.
Can I negotiate without involving a lawyer?
For small-dollar, low-complexity matters with a low-risk counterparty, yes. For commercial contracts above modest value, regulated industries, employment matters involving equity or non-compete, or cross-border deals, professional negotiation pays back many times over. The same logic as contract drafting: the cost of a properly negotiated contract is a fraction of the cost of a clause that goes wrong later.
What happens if the negotiation fails?
One of three outcomes. The deal does not happen, and you exercise your BATNA. The deal happens on the counterparty’s terms, in which case the question is whether those terms are workable for you. Or the dispute escalates into pre-litigation territory, where the next step is often a formal legal notice to crystallise positions. Negotiation handled well usually avoids the third outcome.