Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm Insights
Mums the Word: The Power of Silence in Contract Negotiation
Author: Dan Brecher
Date: August 20, 2014
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When negotiating a key business contract, sometimes what you don’t say can be just as powerful as what you do. In fact, silence is one of the simplest yet most frequently overlooked contract negotiation strategies.
In today’s fast-paced world, we are not accustomed to silence. Too much quietness makes us uncomfortable, particularly when in the company of others. When there is a lull in the conversation, we feel compelled to fill the void even if we don’t necessarily have anything to say.
During contract negotiation, it is possible to use this social awkwardness to your advantage. Remaining silent gives you the opportunity to really digest what the other party said and plan your response. Speaking too quickly can result in hasty decisions.
Keeping quiet for a moment also signals to the other person that you don’t feel compelled to jump on the deal immediately. It also leaves the other person wondering why you have not yet responded. Are you confused, uninterested, stalling, or simply contemplating your decision? Letting the other side “squirm” may give you the upper hand.
Of course, it is important to remain engaged, even if you are not actively speaking. Maintain eye contact and resist the urge to quell the awkwardness by staring at your shoes. If you need to look at something, study your notes or review the proposed contract.
There is an old saying, “He who speaks first loses.” Silence often compels the other party to reinitiate the conversation. Most people will offer additional information intended to convince you to accept their offer. However, if they want to close the deal badly enough, the other party may even offer more favorable terms without you having to propose them.
If you have any questions about this post or would like to discuss your company’s business contracts, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
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