What do you do if your client in fleet operations is pushing for unfavorable contract terms?

If your client in fleet operations is pushing for unfavorable contract terms, it’s important to handle the situation tactfully. Start by thoroughly understanding their demands and the potential impacts on your operations. Prepare a strong case with data and examples to support why these terms may be detrimental. Engage in open and honest communication with your client, explaining your concerns clearly and professionally. Explore compromises and alternatives that can meet the client's needs without compromising your business integrity. It’s helpful to know your non-negotiables ahead of negotiations. Always maintain a professional demeanor, aiming for a win-win outcome that fosters a long-term partnership.

As lawyers we need to understand the business needs, which also needs to be balanced with our knowledge & expertise, as well as our ethics and interest in protecting the operation. Some essential concepts to highlight: * Trust in the Lawyer: Not given but gained. * Business Acumen and Knowledge: To be built, avoid being seen as a barrier. * Legal Acumen/Ethics/Profesionalism: A strong base from the formal studies is critical, though the experience too. Ethics and values, are essential. * Candidness/Transparency/Clarity: Details of the legal analisis and risks, need to be early brought to the table & explained. * Focus on mitigation of Risks rather than discussing wether it may or not happen. * Final Decision: Belongs to the business.

By understanding the client's needs, clearly communicating the concerns, and proposing creative solutions, will increase the chances of reaching a mutually beneficial agreement. A strong client relationship is built on trust and fairness, so focus on finding a win-win solution.

" The power of bargaining " - One aspect which is looked at by the courts and being an in-house counsel one cannot overlook it. You cannot always be in a position to negotiate the best one can do is to negotiate tactfully and make sure that the clauses do not get out of your hand at any time. Play with Indemnity, LOL direct & indirect damages. Make sure that the damages are decided by court than the party. And no need to modify any clause if you are aware that it will not trigger in your company set up. Be mindful and precise on suggestions. It's easy to get a couple of clauses in your favour rather you aim to alter the complete agreement.

What's important in such a situation is that first understanding the intentions behinds which prompted the proposal before act on the proposed term, because it maybe intended to prostrate the contract or to take advantage on the negotiation .

Interests based negotiations can be an alternative in this scenario. You should assess the client’s interests in the operation, and balance it with your company objectives. It requires active listening skills and a strategic thinking. I recommend to identify the interests behind the commercial figures (such as getting a more favorable exit provision, integrate a new market, getting more flexibility).

One thing I found helpful is to reject the idea firmly and in an absolute sense at the very first moment it is suggested. This “spontaneous” rejection leads to much more positive and constructive negotiation with the client based on rational reasoning, whereas the burden of convincing is heavier on them. The possibility of losing the client because of this very first reaction is zero. It is clear that anything decided as a result of the negotiations will be received by the client as a special treatment and response and it will establish a trustful, transparent and responsible relationship.

By understanding the client's needs, clearly communicating the concerns, and proposing creative solutions, will increase the chances of reaching a mutually beneficial agreement. A strong client relationship is built on trust and fairness, so focus on finding a win-win solution.

In each negotiation, each Party has an objective it wants to achieve. The goal and objective might be aligned or opposed, in case of unfavourable terms, the first thing to understand is the objective the other party want to achieve and the risk it brings to you. If there are alternatives in which the Client's objective can be achieved without compromising your objective that should be the way to go. However, in circumstances where there are no agreeable alternatives, it is important to assess the risks that will be brought by the proposed terms and any suitable mechanisms to mitigate them without affecting your objective and reputation. Where no solution whatsoever it is time to seek a cool-off time or walk away from the deal.