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Please clarify." Dig Deeper: How to Build Business Alliances How To Red-Line a Contract: Track Changes Unlike the days of old, most contracts are passed back and forth electronically these days. Then, if, upon receiving a contract that doesn't reflect the correct terms, she can then forward the prior e-mails to the drafting party with a note saying something along the lines of, "per our previous discussions, these terms, which we previously agreed upon were not included. If she takes the meeting in person, she will then send a follow-up e-mail recapping points of the conversation, including any personal stories or jokes that were shared at the time. "During the course of conversations I take copious notes and I save every single e-mail communication between myself and the party concerned," she says.
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There's only one thing I need to change to clearly reflect our agreement." Tonya Fitzpatrick, who is both an attorney and entrepreneur as the executive producer of World Footprints Radio in Silver Spring, Maryland, says that taking a diplomatic approach to the conversation rather than relying on "legalese" to resolve conflicts in the contract is also essential. "Start on a positive note, maybe, 'Hi Joe, I've received the contract, and it looks great. But if there are points which are more significant, "call the creator of the contract to talk about it first," she says. This creates a cooperative atmosphere, and makes it easier to iron out any issues that may arise." Lamb says that it is fine to note the items that need changing only slightly. "During the discussion, it is important to point out all the areas where you do agree before turning to your differences. "I firmly believe that if the work is a good fit that you can come to a positive resolution and make it a win-win for both sides," she says. To do that, Pardes says that you should discuss the contract issues by phone, explain your point of view and truly listen to theirs. Dig Deeper: How to Negotiate a Contract With a Big Client How To Red-Line a Contract: Make it Conversational Once you commence the process of negotiating a contract, you'll want to engage the other party as much as possible in as open and positive a manner as a way to demonstrate how much you actually want to work together, says Diane Pardes of Lexington, Massachusetts-based Pardes Communications.
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Contract templates are readily available for free online and can be tweaked to suit your specific needs. "Another thing you can do is go online and search for contracts similar to the one you are looking it, she says. One way to do this is to ask other business owners you know if they have any contracts you could look at and what is the "norm" for a contract in your industry, says Michelle Dunn, author of Starting a Collection Agency. "Start by researching all aspects of the changes you propose, so what you propose has a basis in fact and practice," says Sandra Lamb, a career and lifestyle expert, who writes about how to negotiate a contract in her book, How to Write It. How To Red-Line a Contract: Do Your Homework Before beginning the process of changing a contract, spend time making sure the things you are asking for are commonplace for your industry. Here are some tips about how to make your next contractual negotiation a winner. That's why it's critically important to approach the editing, or red-lining (think red ink like that used by your teachers growing up), of contracts in an intelligent manner. Worse yet, it might actually poison the deal altogether. A disagreement over just a few words or phrases might be all it takes to create a nasty back and forth that can get emotional and expensive, especially when lawyers get involved. While this last step might seem like an inconsequential one, it can actually be a tipping point where your dream turns into a nightmare.
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All that stands in the way is for you and your potential new customer to hammer out the details of your contract. Imagine the following scenario: Your business lands a dream customer, one that will put your growth on the fast track.