Doing the Deal 79

Don’t allow the other side to reopen issues that have

already been settled. For example, if you’ve already agreed on the
price, the timing of the sale, and other terms, don’t allow the other
side to reopen any of those issues as you draft the final document.
This is why it’s a good idea to write down agreements on issues as
they are resolved. If the other side insists on reopening one issue,
take that as your right to reopen all issues to negotiation. Neither
party should have the right to pick and choose. ‘‘If you weren’t
happy with the price, you should have said so earlier, before we
agreed on that point. But if you insist on renegotiating the price,
then that will affect the terms and timing of the sale from our per-
spective since we see these as a total package. Is that what you
want?’’
Make it official. Either a verbal restatement of the agree-
ment, a handshake, or a meticulous formal contract is in order,
depending on the situation. But written agreements are always
best. Even deals between family members benefit from written
agreements.
Include enforcement mechanisms. Many negotiations in-
volve promises. ‘‘I’ll do this if you’ll do that.’’ But what if someone
fails to make good on his promises? Your agreement should spell
out the consequences: ‘‘If interest and principal is not paid as
scheduled, the entire outstanding balance of the loan will be due.’’

CHAPTER REVIEW
To discover what you have learned so far, take the following open-
book review quiz.

1. Describe the five basic steps of negotiating.

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