How can you use compromise to find common ground in contract negotiations?

1 What is compromise?

Compromise is a negotiation style that involves making concessions and finding a middle ground between the parties. It is based on the idea that both parties can gain something and lose something, and that a fair and balanced outcome is preferable to a win-lose or lose-lose scenario. Compromise is often used when the parties have some common goals, but also some conflicting ones, and when time is limited or the relationship is important.

4 What are the drawbacks of compromise?

Compromise also has some drawbacks as a negotiation style. First, it can lead to suboptimal outcomes, where both parties settle for less than they could have achieved, or sacrifice some important aspects of their interests or values. Second, it can create a false sense of agreement, where both parties agree on the surface, but are not fully satisfied or committed to the contract. Third, it can undermine your credibility or authority, if you compromise too much or too often, or if you compromise on something that is essential or non-negotiable for you. Fourth, it can generate resentment or dissatisfaction, if you feel that you have compromised more than the other party, or if you regret your concessions later.

5 When to use compromise in contract negotiations?

Compromise is not always the best or the only negotiation style to use in contract negotiations. It depends on various factors, such as the nature of the contract, the relationship between the parties, the time available, the power balance, and the personal preferences of the negotiators. When it comes to compromise being suitable, it is more likely when the contract is relatively simple, short-term, or low-stakes; when the relationship between the parties is cooperative and respectful; when there is a deadline or urgency to reach an agreement; when the power balance between the parties is equal; and when both negotiators are moderate and flexible. Compromise is less suitable when the contract is complex, long-term, or high-stakes; when there is a competitive, hostile, or distrustful relationship between the parties; when there is no pressure or need to reach an agreement quickly; when one party has more leverage or influence over the other; and when both negotiators are extreme, rigid, or idealistic.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?