Glossary
What is negotiation?
Negotiation is the process two or more parties use to settle differences and reach an agreement both can accept and honor, such as the terms of a contract.
Elements of a negotiation
A widely used framework, the seven elements from the Harvard Program on Negotiation, breaks a negotiation into parts you can prepare for:
- Interests. What each side really needs.
- Options. Possible deals that meet those interests.
- Alternatives. What each side will do if there is no deal.
- Legitimacy. Fair standards to judge an offer.
- Communication. How clearly each side listens and speaks.
- Relationship. How the parties will work together afterward.
- Commitment. What each side agrees to do.
Contract negotiation in practice
In contract work, negotiation happens through redlines on clauses such as liability, payment, service levels and termination. Most people are not natural negotiators, but preparation helps: know your fallback positions, know which terms matter most and keep a clear record of each version, so nothing changes without being noticed.
How Aavenir handles it
Contractflow runs redlining in Word with every version on the contract record. Aavenir AI reviews each counterparty edit against your playbook and clause library, suggests the approved fallback, and a person decides what to accept.
Common mistakes
- Starting without knowing your walk away point
- Negotiating price and forgetting terms such as liability or renewal
- Losing track of which version holds the agreed changes
- Winning a point but damaging the relationship you need afterward
Keep reading
Contract versions Contract versions are the successive drafts of an agreement made during redlining and negotiation, tracked so everyone knows which text is current and final.Read more 
Contract clause library A contract clause library is a central set of approved clauses, with fallback positions and guidance, that drafters and reviewers reuse instead of writing or judging language from scratch.Read more Contract approval Contract approval is the step where the right people review and authorize a contract before signature, based on rules such as contract value, type, risk and any deviation from standard terms.Read more Frequently asked questions (FAQ)
Common questions
What makes a contract negotiation successful?
Both sides leave with terms they can accept and will honor. That usually comes from understanding each other's interests, preparing fallback positions and keeping the relationship intact. Read about contract approval.
What are fallback positions in contract negotiation?
They are pre approved alternatives to your standard clause, such as a higher liability cap or longer payment term, that negotiators can offer without new approval. A clause library keeps them in one place. Read about contract clause libraries.
How does AI help with contract negotiation?
It can compare a counterparty's draft with your playbook, flag risky changes and suggest approved fallback language. The decision to accept a change stays with a person. AI suggestions should always be reviewed before they go back to the other side. See Contractflow.
Have a question we have not answered? Ask the Expert
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See your contracts run on one record.
- 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
- 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
- 3 ServiceNow or standalone We show the deployment that fits the systems you already run.
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