Negotiating on Terms of a Transaction
Businesses often need to negotiate the terms of a transaction. Whether it’s contracts with suppliers, a commercial property lease, or an agreement with a service provider, our solicitors can help you.
We are skilled negotiators and understand the complex legal, tax and commercial aspects that often accompany these transactions. Our priority is to secure terms that meet your business objectives while also protecting your interests.
For a free quote, call us on 0191 567 7244 and we’ll be happy to help you.
What to consider when negotiating a transaction
All commercial transactions are different, so the terms of each will vary according to the circumstances. A few overarching points that certainly need to be considered include:
Authority – do you have the authority to negotiate the terms of a transaction, and does the other party you are dealing with also have the necessary authority?
Jurisdiction – what jurisdiction does the other party operate in, and could a foreign entity mean additional checks or legal/tax advice is needed?
The transaction – exactly what is included in the agreement?
Financial matters – how much will the transaction cost, how will it be paid and by what date?
Risks – have you completed due diligence to check what potential risks and liabilities could be associated with the transaction? Are extra precautions needed to manage these risks?
Confidentiality – do you want to keep the negotiations confidential by asking the other parties to sign a non-disclosure agreement?
Timeframes – what timeframes are you working to?
Responsibilities and liabilities – what responsibilities and liabilities is each party taking on?
Restrictions – do you want to include restrictive covenants to prevent the other party from a certain course of action?
Breaches – what are the consequences if either side breaches the terms of the agreement?
Heads of Terms – do you want to draw up a Head of Terms Agreement first, which will form the basis of the agreement going forward?
The exact terms will be far more nuanced, and each and every one requires careful consideration. This could be the difference between a successful business transaction and one that damages your finances and possibly even your reputation.
Do you need a solicitor?
Businesses are often tempted to negotiate the terms of a transaction without getting expert legal representation. However, this may cause certain elements of the transaction to be overlooked, which can prove costly.
Asking a solicitor to negotiate the terms of a transaction is something that all businesses can benefit from. It ensures you understand the legal, tax and commercial implications of the transaction. It also ensures you remain compliant with the rules and regulations, and that you identify any potential hazards before it is too late.
At Cooklaw Solicitors, we have extensive experience in reviewing and negotiating commercial transactions, including Heads of Terms. We work closely with commercial clients across England and Wales.
Our solicitors act on a fixed fee basis. This starts with a free initial consultation. Contact us to discuss your requirements. Afterwards, we provide a fixed fee quote with no hidden charges.