You're faced with conflicting contract terms. How do you find a resolution that satisfies both parties?
When contract terms clash, it's crucial to forge a path to agreement. To navigate this challenge:
How have you successfully resolved contract disagreements?
You're faced with conflicting contract terms. How do you find a resolution that satisfies both parties?
When contract terms clash, it's crucial to forge a path to agreement. To navigate this challenge:
How have you successfully resolved contract disagreements?
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To resolve conflicting contract terms, I will start by reviewing the specific sections of the contract in disagreement and identifying the needs of both parties involved. I will prioritize having open conversations with the other party to discuss each side’s concerns and priorities. I will also look for common ground or a compromise that addresses the primary issues for both parties. This might involve modifying certain terms or creating new ones that are mutually acceptable. Finally, I will clearly document the agreed-upon changes to avoid future misunderstandings and ensure both parties are satisfied.
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When contract terms clash, it is essential to determine the original intent of the contracting parties at the time of the contract’s conclusion. Often, reviewing the preamble of the contract provides helpful insights. As a mediator, I assist clients in identifying not only their current individual interests but also their shared interests now. This approach can sometimes reveal opportunities for a win-win solution that goes beyond the legal framework.
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Agreements are to be undertaken within the legal mandates those are enforceable in Courts. I have witnessed many instances where the parties are very adamant that in any conflicting clause scenario their clause has to be finalized. In such situations once they are well explained and made to understand the legal mandates applicable in that particular arrangement and the permissibility/ maintainability of the said terms they are demanding, the parties agree to workout alternate permissible terms that is mutually acceptable.
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If business wants to go ahead with the deal then the best approach is to compromise with some clauses and come up with alternate language which protects both parties interests. For eg if the client insists on IP clause then you compensate by making adjustments in the Indemnification clause which protect your company's interest more favourable. Be flexible sometime to get the Agreement signed within turn around time.
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Elinore Sanchez
Strategic Sourcing Specialist-Indirect Materials @ Nitto Avecia | Procurement Expert
It’s important to determine what most important to both parties. Having collaborative conversations can lead to identifying each parties most important “asks” in a contract negotiation. I had a recent experience where a vendor wanted a multi-year contract and high weekly minimums. During a collaborative session I was able to ascertain that having that multi-year contract was more important than the weekly minimums. I was able to negotiate down the weekly minimums by agreeing to a multi-year contract after having the contract reviewed by legal to be sure there was a termination clause that worked in our favor as well. In the end, my company is realizing a huge cost savings and the vendor added a robust customer to their portfolio.
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When resolving conflicting contract terms, focus on strengthening the relationship by understanding the intent behind each party's position. Identifying these core motivations often reveals common ground, enabling creative solutions that support both sides’ interests. Evaluate each option's legal and commercial viability: some terms might align better with legal standards, while others may offer practical benefits, like improved flexibility or cost-sharing. And, if the issue is business, let the business people make the decision! Finally, look at the issue holistically: adjusting one party's requirement in exchange for a favorable term elsewhere in the contract can meet both parties’ needs without compromising key priorities.
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When contract terms clash, it's like solving a puzzle where both parties need to win. The solution often lies in understanding the 'why' behind each position. Start by mapping parties' core interests. What's driving these conflicting terms? Sometimes, what seems contradictory on paper has compatible goals underneath. Instead of defending positions, explore alternatives. Could a hybrid solution work? What about phased implementation? Or adding safeguards that address both parties' concerns? The secret? Keep communication open and creative. Sometimes the best resolution isn't about compromise – it's finding an entirely new path that serves everyone's interests better. Remember: The goal isn't winning. It's creating lasting partnerships.
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It comes down to intent. Find out what the intent is first, then work from there. Identify what is critical to each side. If the terms don't make sense, consult legal counsel if needed, and look for creative solutions that focus on the intent.
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When contract terms clash, resolution starts with understanding, not just the terms, but the people behind them. Begin by uncovering why each term matters to the other party. You’ll often find that one party’s priority is the other’s opportunity for flexibility, paving the way for compromise. If terms are equally critical, collaborate to identify shared goals and create solutions that reduce risk for both sides. Bring in legal counsel to refine and validate these options. Ultimately, success comes from showing up with solutions.
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