What do you do if the other party in a contract negotiation is being aggressive?

If the other party in a contract negotiation is being aggressive, it's important to handle the situation strategically and professionally. Maintain composure and set clear boundaries, focusing on underlying interests rather than responding with aggression. Utilize de-escalation techniques, seek support from mentors or legal advisors if necessary, and evaluate options if the aggression persists. Successful negotiation relies on maintaining calm, effective communication, and finding solutions that satisfy both parties' interests, so facing aggression with professionalism and strategy can help overcome challenges and reach a mutually beneficial agreement.

When dealing with an aggressive negotiator, it is important to remember that in a sense, their aggressiveness is irrelevant. What really matters is your preparation. It will give you clarity as to what you are and are not willing to concede. In fact, you project power when you are unfazed by their conduct and remain true to your needs in the deal.

it's important to remain calm and professional. Focus on my goals and objectives, and try to steer the discussion back to a constructive and collaborative approach.

To prepare to negotiate you will need is to review the issues or deal points which you will be discussing. Begin by having a candid understanding in your own mind as to whether you can simply walk away from the deal and at what point you would do so. This will give you a roadmap for how you will address the specific deal points and other issues as they arise.

Having made a list of your “must haves,” you then produce a list of additional deal terms which are important or would be nice to secure.

The laws of supply and demand apply to negotiation as well. Let the other side respond to you. Seek to project detachment rather than desperation.

Especially with an aggressive adversary, you must analyze as best you can what they really need out of the deal. You are less likely to get a candid description of what they need and why from them directly. Do your own analysis of their circumstances. Imagine a conversation in which you say to your adversary “[l]et me explain to you why you want to give me what I’m asking for.” As an example: I am representing a client in court and the other side makes a document request. I want an additional 30 days to compile and review the documents. They have a choice: give me 30 days, or have me file a motion requesting 30 more days; go to court, wait for the court date and the decision. They wind up giving me 30 (or more) days anyway.

As mentioned above, go into the negotiation with a clear (or as clear as possible) list of benefits which YOU need, the reasons you are willing to engage in the discussions in the first place. If relatively early on it seems that the other side won’t budge on these, put the list in writing. Send it to other side indicating that the list is nonnegotiable for you. Express your desire to avoid wasting either party’s time. Ask whether any item on that list is unacceptable, indicating that if the answer is yes, you "regret that the we are unable to come to an agreement."

It depends what position I'm in. If I am in a dominant position, I will quickly let the other party know. If the balance of power is against me, I will opt for the "Walk Away" because a business relationship does not end with the negotiation of the contract but begins with the negotiation of the contract. And in a business relationship, I expect something else than a balance of power.

Are there any “nuclear options” are available to you and/or to the other side? Bankruptcy? The mere commencement of litigation? If applicable, do you have an alternate provider of the product or service under discussion? (All of these in fact go into the original analysis of when you will (or can) simply walk away).