What is Negotiation in Law?

You may find yourself in a position where you are considering entering a negotiation with an opposing party.

Negotiation is recommended as it generally creates the optimal results for all parties involved and prevents your matter from entering court.

You must be aware of your rights and responsibilities when entering a negotiation so as to avoid leaving it feeling like your needs and desires were undermined.

This article will explain the basics of negotiation, although legal advice is recommended at all steps of the progress!

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What does Negotiation Mean?

As stated by the English Dictionary, negotiation is:

The process of discussing something with someone in order to reach an agreement with them.

Negotiation is the act of bargaining with one or more parties to reach a mutual-benefitting agreement. It applies the act of compromise to ensure an outcome is reached that suits the desires of all parties.

The purpose of negotiating is to avoid escalation of debate that ends in a lengthy court matter or a falling out of a potentially beneficial relationship between parties.

Negotiating can create long-term, quality results when it is done properly!

Types of Negotiation

There are two significant types of negotiation:

1. Integrative: Integrative negotiation, known commonly as “win-win”, is defined as a form of negotiation that allows benefits to both sides of the matter. It provides both parties with a satisfying result. Like all negotiations, it involves compromise, but all involved feel like they gained from the matter and no needs are left unmet. It is often the goal of a civil negotiation.
2. Distributive: Distributive negotiation, otherwise referred to as a “win-lose” negotiation, refers to the form of negotiation where a loss by one party is a gain to the other/s. It represents a fixed value, where parties are attempting to gain as much as possible from said value.

Negotiation Strategies

The strategy you use depends on the matter on which you are using, however, some general strategies include:

• Contend: convincing the opposing party to compromise to a specific part of the matter, or the matter in its entirety, in your favour.
• Submit: agree to compromise on a part of the agreement of your choice, generally one of little meaning to you.
• Confront your differences: Don’t be afraid to point out the differences in what both the opposing party and you are attempting to gain from this negotiation. This allows for open conversation and a no-nonsense approach to the matter. This may further show you are serious about the ordeal and are willing to compromise if needs be.
• Bargain and Compromise: As earlier mentioned, a meaningful, lasting negotiation will result in long-term benefits for all involved parties. Ensure you put your opinions and needs into the matter in a direct fashion but allow room for compromise.

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When should you Negotiate?

Negotiation is recommended as a productive step when an issue occurs. It is however especially recommended if:

1. You share a business (that you wish to continue) with the opponent
2. You can see a future where both parties can achieve what they desire
3. You wish to solve the matter in the minimum amount of time possible
4. You wish to solve the matter with the minimum fees/money spent

Advantages of Negotiation

There are many significant advantages of entering into negotiations, including:

1. Avoiding an unnecessary court matter
2. Money saved (generally) on legal fees
3. Both parties will, if well executed, exit feeling like their needs were met
4. Can build/maintain strong relationships within businesses
5. Help to avoid future conflict

Tips for Negotiation:

1. Break the Negotiation into smaller parts: When negotiating, a common error people make is arguing the “bigger picture” and not considering the distinct parts of the issue. It is recommended to break negotiations into smaller sections, so all components of the disagreement can be covered in a way that allows open discussion and healthy debate.
2. Consider your opponent’s point of view: Another mistake often made is to not stop to consider the arguments of the opponents in the matter. It may be beneficial to take some time to think of the other side’s point of view to prevent the negotiation from becoming heated and unproductive.
3. Avoid Aggression: One of the most important things within a productive negotiation is to avoid arguments and maintain a civil conversation. Emotions may take hold during the conversation. Remember, a negotiation is not necessarily an argument, and you can both walk away pleased with the outcomes if executed well!
4. Openly Communicate: Keeping the dialogue open is a great way to ensure your need are being both considered and met over the course of the matter. In general, it is important to openly express what you look to gain from the debate. It is also a great way to develop lasting relationships with your opponent (if it is beneficial) and prevent negotiation from escalating to court.
5. Separate Personal Issues from the Matter: If personal issues are present between the two parties, try to avoid bringing them into the negotiation. Emotions may run high and arguments or unfair propositions may result. This can ultimately affect the satisfaction of the matter.

Should I get Legal Help?

In many situations, it will likely be beneficial to seek the help of a lawyer in the negotiating process.

A professional will assist in achieving the best possible outcome for you in the matter.

Their knowledge of the process and the law, in general, can help you with clarifying your goal, ensuring all contracts are legal and that you enter the ordeal with sufficient knowledge and preparation.

Be referred to the best litigation lawyers on the Sunshine Coast for negotiation & settlement