The Negotiator Magazine

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Why focus negotiation on contentious issues that address the consequences of failure when efforts could be directed towards greater collaboration and incentives and methods to achieve success?

For all the talk about a changing environment, this year's Top Ten Negotiated Terms shows no sign that it has affected the behavior or attitudes of the lower ranks of corporate organization. Whoever drives policy or negotiation practice has clearly not been party to the executive discussions about a new, more collaborative approach to business dealings. Or if they were part of those discussions, they either could not interpret what it might mean to the contracting process, or they chose to ignore it. Recent CEO surveys show nearly 50% of executives believe their company is 'not very good at collaborating'. The survey results suggest the percentage may be much higher.

IACCM "TOP 10" Negotiated terms 2006

 

 

 

 

 

Term

2005

2004

2003

2002

1

Limitation of Liability

1

1

1

1

2

Indemnification

2

4

10

3

3

Intellectual Property

3

5

3

2

4

Price / Charge / Price Changes

6

3

5

7

5

Termination (cause / convenience)

7

7

7

5

6

Warranty

5

2

2

6

7

Confidential Information / Data Protection

8

10

14

15

8

Delivery / Acceptance

9

8

12

13

9

Payment

4

6

4

11

10

Liquidated Damages

12

9

13

19

11

Service Levels

10

13

 

 

12

Insurance

15

11

 

 

13

Performance Bonds / Guarantees / Undertakings

13

23

 

 

14

Applicable law / Jurisdiction

14

12

 

 

15

Rights of Use

-

16

 

 

16

Assignment / Transfer

16

17

 

 

17

Dispute Resolution

-

-

 

 

18

Audits / Benchmarking

17

18

 

 

19

Invoices / Late Payment

-

 

 

 

20

Most Favored Client

18

 

 

 

21

Freight / Shipping

22

19

 

 

22

Business Continuity / Disaster Recovery

19

 

 

 

23

Entirety of Agreement

21

 

 

 

24

Security

24

 

 

 

25

Enterprise Definition / Future Acquisitions / Divestiture

11

 

 

 

26

Non-Solicitation of Employees

-

 

 

 

27

Force Majeure

20

24

 

 

28

Export / Import Regulations

23

 

 

 

29

Product Substitution

 

 

 

 

30

Escrow

25

 

 

 

Chief Executive magazine, December 2006

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April 2007