What is the primary purpose of contract negotiation?

The primary purpose of contract negotiation is to agree on the terms and conditions prior to signing the contract. This stage is crucial as it allows both parties to clarify their expectations, obligations, and rights. Successful negotiation leads to a mutual understanding and agreement, which reduces the risk of conflicts and misunderstandings in the future. Each party articulates their needs and concerns, enabling them to reach a consensus that reflects their interests. By thoroughly discussing and formalizing these terms before signing, all involved parties can ensure that they are aligned and committed to the contract's provisions. This foundational agreement sets the stage for a positive working relationship and helps in avoiding disputes later in the contract's lifecycle.