ARE THESE NEGOTIATIONS IN BAD FAITH? WHAT TO WATCH FOR.

No business and no one person is the same, nor will they have the same strategies and goals. Even so, each party in a business deal should come to the table with a focus on finding an agreement that is good for both businesses and the deal itself, for negotiations to be successful. 

Unfortunately, this is not always the case. Some parties may have only their own benefit in mind, and in turn, may negotiate in bad faith. While it is critical to consult a legal professional before you begin negotiations for a business deal or contract, it is also essential to prepare yourself, and know what to be aware of as you move forward. 

2 SIGNS THE OTHER PARTY IS DEALING IN BAD FAITH

California business owners know the art of the deal. There are many issues to be cognizant of as you enter into negotiations. For example, it is always helpful to consider what you should do as you approach business negotiations – after all, that informs you of the behaviors you and the other party should avoid as well. 

There are two opposing behaviors in particular that could indicate the other party is not acting in good faith. Business owners should watch for:

1. Urgency: Perhaps the other party is rushing to reach an agreement without paying attention to the details. Or maybe they push one specific agenda aggressively, without thought for any compromise. A sense of urgency for no particular reason is often a sign that the other party is dealing in bad faith. 
2. Delay: The opposite side of the coin is also a red flag. If the other party constantly avoids any type of conflict, reschedules meetings or puts off agreeing to the terms, this could also be a sign of bad faith negotiations.

It is only natural to have your own business’ interests in mind. However, when it is clear that the other party does not have the deal’s interests in mind and does not consider the future remotely, this is a dangerous sign. 

During negotiations, if you recognize signs of bad faith, the first step will be to speak with an attorney. Seeking legal guidance can help you navigate negotiations while protecting your business. 

Posted in Business Litigation | No Comments »