Negotiation and Its Role in Investment Contracts Between Jurisprudence and Law

Abstract

Negotiation in contracting represents a vital process for discussing the terms and conditions of an agreement between two or more parties, with the goal of reaching a legally binding arrangement that serves the interests of all stakeholders. This pre-contractual stage aims to define the essential elements of the contract, such as pricing, delivery methods, and timelines, which ultimately leads to a mutually satisfactory agreement and facilitates the long-term success of the contractual relationship. However, this stage requires thorough preparation, a deep understanding of all information related to the subject matter of negotiation, and a high degree of flexibility and willingness to compromise from the parties involved to ensure its success. It also demands precise and transparent drafting of its provisions, clearly defining the rights and obligations of each party and their respective responsibilities in case of any breach. Accordingly, negotiation as a preliminary stage preceding contract formation is considered crucial due to its significant role in ensuring the success of the contract after its conclusion. It helps safeguard the parties’ rights during execution and reduces the likelihood of disputes among them.