Choose Your Battles When Negotiating Sales Contracts

Startup companies negotiating commercial contracts typically find themselves outgunned on the legal front, maybe with one staff lawyer or retained lawyer working by the hour pitted against a well-seasoned purchasing department or law firm. When that “40 page document” lands on your desk, writes McCarter & English attorney Dror Futter, “you can almost hear the air seeping out of the deal.” The response, he says, often goes to one of two extremes: Give up and take what they offer or dig in and make it a battle, and either way there are some obvious and not so obvious pitfalls. The best course, he says, is to pick your battles. With that in mind he provides a short list of what it’s most worth negotiating, what you should aim for, and what you’re likely to get.