Top 7 Mistakes That Promoters Commit During Contract Negotiation

1. USING DOWNLOADED TEMPLATES¹

When the parties randomly use downloaded templates that are generally available on the internet, then the negotiations are bound to take very long.

Example: A well-known IT company is sourcing cleaning solutions and equipments for its office. Naturally, the draft that is generally used for appointing software vendors cannot be used. As the intention in both the transactions is different and using the template created for some other purpose, just because it is available may be a blunder and may unreasonably delay the negotiation time, resulting into delay in closing contract.

In fact, Sale of Goods Act, 1930 in India specifically attaches a lot of importance to the intention of the parties and more than 15 sections which are subject to the intention of the parties. More information can be found here².