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Word contract template intro graphicWord contract template intro graphicWord contract template intro graphic
Here’s a premium professionally designed project proposal contract.

Learn how to use the best simple business contract samples to save time. Not only will you see free contract template Word designs, but we’ll share useful tips as well.

In this article, we’ll feature premium business contract templates for Microsoft Word. Plus, there are some free contract samples for Word if you don’t have any budget. 

These documents may not address every legal provision in your area. Always review your proposed contracts with a licensed legal professional.

5 Top Premium Designs for Microsoft Contract Templates

Let’s look at five of the top premium contract template Word designs available in 2023. These stunning contract example Word designs feature beautiful graphics and compelling styles:

1. MS Word CV Contract Business Card Invite Templates

Contract template WordContract template WordContract template Word

This contract template Word is part of a full pack of business documents. It’s a Microsoft contract template that you can customize easily. It’s illustrated with pre-built content placeholders throughout. Rearrange pages, add custom text, and more.

2. Project Proposal

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Take any contract example Word to the next level thanks to Project Proposal. Designed by experts, this one helps you outline your contract proposals in style. With ample room for key details, you can try out many examples of contract formats in moments. Plus, it’s print-ready for easy sharing and distribution.

3. Proposal Contract & Invoice Template

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This contract example Word comes in a set of business templates. With sleek graphics and ready-to-use features, it’s a quick way to build an ironclad contract. Pair your contract with a matching invoice, proposal, and timeline form. You won’t find those with a business contract template free Word file!

4. Proposal and Contract Template for Word

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Looking for a clean, professional layout? This contract design template is easy to customize. It also comes with a number of companion designs you can use for your professional needs. You even get extra file formats for your convenience.

5. Proposal and Contract Bundle for Microsoft Word

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Check out this stylish, professional set of designs. You get more than just a contract design template with this file. Enjoy an entire suite of professional business proposal documents, all in one convenient download.

25 Top Free MS Word Business Contract Template Examples to Download (2023)

Before looking for business contract template free Word designs, check Envato’s free offerings first.

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Each month Envato Elements offers a different selection of free files for you to try. 

Try out various premium template files (not always contract example Word) at no cost to you.

Here’s the deal:

  • Every month Envato Elements offers 12 different hand-selected files, (fonts, presentations, videos, and more). Create a free account to download this month’s free premium files now.

Now let’s look at our list of free contract sample templates. These Microsoft Word contract template designs are free and available for download, right now:

1. Residential Lease Agreement Contract Template Word

Simple business contract sampleSimple business contract sampleSimple business contract sample

This is a contract template in Word for lease agreements. It’s an option for landlords and tenants seeking a written contract format for Word.

2. Formal Meeting Agenda Word Contract Template

Designed as a meeting agenda, you can adapt this file into a contract sample template. The linear format works for both simple and complex contracts.

3. Job Estimate Contract Template Word

Use this blank contract template in Word for a simple business contract sample. Add lines for signatures and you’ll have a basic contract format for Word that you can use for business.

4. Business Bill of Sale Free Contract Template Word

This free business contract template for Microsoft Word is set up as a bill of sale. It works if you need to specify sales terms, items included, and more.

5. Non-Disclosure Agreement Contract Template for Word

Contract example wordContract example wordContract example word

A non-disclosure agreement is a contract often used between employees and employers. This business contract template free Word file lets you make your own versions. Simply add your own text.

6. Motor Vehicle Bill of Sale Word Contract Template

Here’s another bill of sale, focused on the auto industry. It’s one of many examples of contract formats that you may encounter in your business. You can customize this Microsoft Word agreement template to meet your needs.

7. We Owe Form MS Word Contract Template

Use a blank contract template for Word like the We Owe Form to track amounts owed and costs incurred. It’s a basic layout, but you can insert extra details when needed by using Word’s built-in features.

8. Annual Salary Increase Contract Templates Word

Contracts can bring good news. In the case of this free contract sample for Word, it outlines an annual salary increase. Change the intervals to any timeframe desired.

9. Free Letter of Intent Template

A letter of intent helps outline the scope of a project in contract form. This free contract format for Word lets you draft your own LOI or contract proposal.

10. Rent Receipt Microsoft Word Agreement Template

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A rental agreement is an important use for contracts. This business contract template for Microsoft Word has that in mind.

11. Articles Business Contract Template Word

Articles of incorporation are common examples of contract formats. Use this contract format for Word to draft your own as you start a new business.

12. All Pages Numbered Blank Contract Template Word

A very basic blank design with page numbers, this file can work as a contract sample template. You’ll add all details and formatting, which preserves creative control. 

13. Corporate Minutes Contract Template Microsoft Word

This design works as a business contract template free Word file. It’s a neat, ordered layout similar to many business contracts.

14. Price Quote Request Form

A contract template for Word is an essential part of any price quoting process. Put key details and outcomes in writing with this contract sample Word design.

15. Syllabus Template

Contract sample WordContract sample WordContract sample Word

A syllabus is an academic example of a written contract. Here’s a syllabus contract sample template that works in Microsoft Word, free.

16. Election to Cancel Contract Template Microsoft Word

This simple business contract sample communicates the cancellation of any contract. It’s done in a clear, concise way.

17. Modern Chronological Resume

Although meant to be a resume, this is also an option for a simple business contract sample. Simply swap out the existing text with your own contract terms.

18. Basic Design Blank Template

Another blank layout, this can become a Microsoft contract template. If you’re unsure about how you want to design your contract and need flexibility, it’s a usable option.

19. Receipt MS Word Contract Template

Free for Word, the Receipt Template can transform into a contract format for Word in a few clicks. Map out contract terms and more on the basic layout.

20. Ion Design Blank Contract Template Word

Examples of contract formatsExamples of contract formatsExamples of contract formats

Ion Design allows you to build custom contract sample Word files. Subtle flashes of color add contrasts to the paragraph-form text.

21. Simple Microsoft Word Contract Template

This simple business contract template Word is easy to customize. While it’s a rather bare bones contract template for Word, free download files often have keep things simple, like this. If you’re looking for a simple starting point, this could be a good fit.

22. Writer Free Contract Template Word

Looking for a free Word contract template for writers? Then, this Microsoft Word contract template could be worth a look and a download. Customize it to meet your needs.

23. Healthcare Contract Template for Word

Contracts are an essential part of the health care industry too. This contract template Microsoft Word document was created with that industry in mind, but could be customized to suit your specific needs too.

24. Work Contract Template Word Free Download

Check out this work contract template for Word. It’s a free download and it could prove to be a great starter Word contract template for a variety of different industries.

25. Collection of Contract Templates for Word

Still can’t find the perfect MS Word contract template? Here’s an entire collection of free contract template Word documents for you to browse and check out today.

Top Premium Business Contract Template Microsoft Word Templates (With Unlimited Downloads)

Later in this article, we’ll go over the best contract template free Word downloads. We’ve got plenty of downloads that help you use contract sample templates at no cost.

Before we do that, there’s one thing you should know. There’s a much better way to source your Microsoft contract templates. With the help of Envato Elements, you’ll get unlimited downloads of the best contract sample Word designs available.

Find Microsoft Word Documents

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Download unlimited premium contract sample templates for one flat rate on Envato Elements.

Thanks to Elements, you can source everything you need for a flat rate. That includes not only Microsoft contract templates, but plenty of other graphic elements. Stock photos, graphics, illustrations and more: you name it, Elements has it.

Keep in mind, business contract templates with free Word designs won’t give you the best value. Spend a bit, get a lot, and use premium contract format Word templates.

How to Create a Contract Template in Word

Now that you’ve got your blank contract template for Word, it’s time to customize it. We’ll add in your content, style it for your company’s brand, and get it ready for presentation. Let’s explore how to create a contract template in Word together.

For this tutorial we’ll use the premium template, Proposal Contract & Invoice Template.

Proposal Contract & Invoice TemplateProposal Contract & Invoice TemplateProposal Contract & Invoice Template

There are ten pages in the template, free fonts, and all the pages are fully editable. Let’s get started:

1. Delete Unwanted Pages

Many of the Word contract templates include many different pages with different styling. In most cases, you will only want a few designs for your contract. Go through the pages included and pick out the ones that fit your contract and delete the other ones. 

To do this, simply highlight all the information on the page you don’t want and click backspace.

Proposal Contract & Invoice TemplateProposal Contract & Invoice TemplateProposal Contract & Invoice Template

2. Delete Unwanted Objects

Premium templates make use of amazing-looking graphics. Not all of these graphics will work for your contract. To delete these elements, click on the graphic and click backspace. 

delete unwanted objectsdelete unwanted objectsdelete unwanted objects

3. Add In Your Text

Now your template is ready to be populated with your contract’s information. The text in Word contract templates is fully editable.

To edit the text, double-click the text and then highlight all of the text. From there, you can paste in your contract’s content. 

add textadd textadd text

4. Change the Font Type

To change the font type of your text, begin by highlighting the text. Next, click on the Home tab. Then click on the Font menu.

When you click on the Font menu, a list of fonts drops down. Now select the font that you want from the list.

change fontschange fontschange fonts

5. Change the Color Scheme

Next, you’ll want to change the templates color scheme to match your business. Head over to the Design tab on the top menu header.

Next, choose the Color drop-down menu. This displays all the color schemes that you can choose from. Pick the one that best suits your contract.

change color schemechange color schemechange color scheme

Let’s look at five quick tips that’ll help you make great contracts in Word.

5 Quick Tips to Make Great Contracts in Word for 2023

We’ve looked at free and premium examples of contract formats. These help you build useful contracts in moments. But to ensure success, consider these five quick tips. Each will help you create your own contract sample Word designs today:

1. Keep Plenty of Open Space

When you choose a contract sample template, keep aesthetics in mind. A messy, cluttered layout doesn’t project a professional appearance. 

Letterhead contract template WordLetterhead contract template WordLetterhead contract template Word

Try this premium template to build your own contract sample Word design.

Aim for minimalist, modern designs that feature plenty of open space. This gives your contract text more room to breathe, and helps it stand out.

2. Stay Tidy With Section Breaks

You never want to combine random details in a contract.

This is where section and page breaks come in. Easy to add in Word, they help keep document sections aligned. They’re your best friend when you’re working with a contract template for Word.

For more, check out our full tutorial on Word section and page breaks:

3. Use Custom Text and Fonts

Arial and Times New Roman may be classic fonts, but they’re falling out of style in 2023. Many new, modern designs with a focus on readability are emerging every day.

Join in by choosing contract format for Word templates featuring unique fonts. You won’t find those in business contract template free Word downloads.

Case study contract sample templateCase study contract sample templateCase study contract sample template

This premium Case Study Template is a fully-featured contract sample template with custom fonts.

Another option is to source your own fonts. As an Envato Elements subscriber, you’ve unlimited access to thousands of custom fonts. Check them out today.

4. Add Page Numbers to Stay in Order

As you build your contract template Word design, you need to ensure that pages stay in sequence. Printed copies could become out of order, rendering your contract confusing.

Page numbers are the perfect solution. These ensure pages stay in the correct order. And they’re very easy to add in Microsoft Word. Learn how today:

5. Try Topic-Focused Designs

Choosing a business contract template Microsoft Word design? Aim for a focused layout. That means staying on topic with your  Microsoft contract template.

Brand guidelines contract format WordBrand guidelines contract format WordBrand guidelines contract format Word

Brand Guidelines is a premium contract sample template focused on branding.

With premium designs from Envato Elements, you’re sure to find a topic-focused design. It’s a key part of choosing the perfect contract sample Word template.

Top 5 Microsoft Word Contract Template Designs Trends for 2023

So, what’s popular in MS Word contract template designs? What makes for a successful solution, here in 2023?

Take a look at these professionally designed contract templates for Word. They’re great examples for trendy design inspiration:

1. Clean Elegant Design

Try keeping your designs clean, open, and well organized. Notice how these designs have plenty of content, but they also have plenty of open or «empty» space.

This is a timeless design decision. Don’t overwhelm the viewer with content. Keep consistent margins too.

MS Word contract templateMS Word contract templateMS Word contract template

Download this professional collection of premium business contract template designs on Envato Elements.

2. Try a Pop of Color

Color can add some added interest to your work. Working with color can also be a great way to tie your Word contract template into your branding.

For example, if your logo design is green, why a touch of green in your contract design too.

Contract template wordContract template wordContract template word

This premium proposal contract MS Word template can be downloaded on Envato Elements.

3. Keep Your Materials on Brand

That said, keeping your professional materials all on brand is a timeless design trend. What does this mean?

Take a look at the professional example, below. Notice how every part of this proposal, from timelines to contacts, all looks like an extension of each other. This visual consistency makes everything feel related.

proposal contract template for wordproposal contract template for wordproposal contract template for word

You can download this entire suite of professional MS Word templates on Envato Elements.

Looking for more business items to add to your design toolkit? Check out this collection of business proposal downloads for Microsoft Word:

4. Package Everything Your Client Needs Together

Imagine the impression you could make, if you package everything your client needs in one, professional presentation. Your contract, timelines, proposals, everything in one, professionally designed folder or booklet.

Classy, right? This is a great example of how this type of approach could look.

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Download these premium MS Word templates on Envato Elements and customize them for your project.

5. Grayscale Can Be Classy and Cost Effective

Printing in color can make for a really dramatic, memorable experience. But you don’t have to use color to make an outstanding impression.

Check out these professional designs. Again, it’s about that visual consistency. That helps make a professional presentation. You can do so in shades of gray and still create something that looks and feels trustworthy and professional.

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Download this premium MS Word contract template and all the companion pieces on Envato Elements.

Discover More Top Microsoft Word Template Designs

Once you begin to use templates, it’s unlikely that you’ll ever go back to «design from scratch.» You’ve seen that templates are a major advantage because they’ve got most of the work done for you. 

Let’s check out more articles with great choices for Microsoft Word templates. With a bit of customization, many of these also work as contract format Word templates.

Common Microsoft Word Business Contract Questions Answered (FAQ)

Want to learn more about how to create a contract template in Word? Or maybe you have a lot of questions about making business contracts in Word, in general. That is why we collected a list of five frequently asked questions and provided answers to them. 

1. Keep It Simple

Use short and concise sentences in your contract. You don’t have to have some wordy contract for it to be enforceable. Make sure to number your paragraph headings so the reader can easily reference your contract’s sections:

2. Include the Fundamentals

Regardless of the type of business contract you are creating, you’ll want to include a few fundamental elements. Those items include the following:

  • names of all parties involved
  • date the contract is effective
  • payments and terms
  • damages for breach of contract
  • contract expiration 

3. Get a Signature

Your contract is not worth much unless both parties agree. The tutorial below explains one alternative for getting documents signed. 

4. Talk About Dispute Resolutions

This will be very important to include if there’s a dispute. Describe the methods that you’ll use to resolve a dispute if it arises. 

5. Discuss All Terms of Payment

Make sure to include all of the deadlines for payments. Also include forms of payment as well and any other compensation details. 

Still need help making Word documents? Check out the next section as we go over even more resources that can help you. 

Learn More About Making Great Word Documents in 2023

Microsoft Word really has many features inside of one convenient package. You might be wondering how to learn about how to make great Word documents.

The best way to keep learning is to check out our other resources for Word. We’ve got a complete set of tutorials that you can check out here: Learn How to Use Microsoft Word (Beginner Tutorial Guide.)

Check out more tutorials to level up your skills. 

Sign For Success With Your Microsoft Contract Templates Now

Ready to create a document? Remember, business contract template free Word designs aren’t the best value.

The designs and options of free templates won’t match the premium options you saw for contract example Word designs. Download a contract format Word file and just fill it in, and you’re on your way.

You don’t have to be an attorney to use these templates. Jump to one of the examples of contract formats and start customizing it to your needs.

Editorial Note: This post has been updated with contributions from Daniel Strongin and Daisy Ein. Daniel and Daisy are freelance instructors for Envato Tuts+.

By
Last updated:

February 9, 2022

20 Business English Contract Vocabulary for the Contract-Crazy Modern Age

Have you ever signed up with a phone service provider like T-mobile?

Or registered for a social media account like Instagram?

Or signed up for a health and fitness mobile app like Charity Miles or FitBit?

If you have, then you’ve signed a contract before!

Well okay, you probably didn’t sign it with a pen while sitting in front of a lawyer. But I’m pretty sure you clicked on the “OK” button and agreed to a screen-full of words in small letters, which is how signing a contract works in the online world.

Contracts are very common these days. But honestly, do we even read them before signing? Most of the time, even native English speakers don’t read contracts, because they’re written in an unusual kind of English.

Just as there’s English for Information Technology and many other business fields out there, there’s also English for Law. You shouldn’t sign what you can’t understand! So, get ready to learn some important law vocabulary for dealing with contracts.

But before you do that, let’s look at why it’s important to learn business English for contractual law.


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Why Learning Business English Vocabulary for Contracts Will Boost Your Bargaining Power

If you’re planning a career in law, knowledge of Business English for negotiating contracts is very important. Even if you’re not, here are some benefits of knowing business English for contracts:

You’ll understand what you’re agreeing to in a contract

Contracts are everywhere these days. When you get hired, your company makes you sign offer letters and employment contracts. In your job, you may need to negotiate contracts with clients and suppliers at some point. And, as we mentioned above, in your everyday life you’ll find contracts on every service, website and program you sign up for.

So, whether it’s for personal or work purposes, it’s important for you to learn contractual English. You’ll not only be able to read and understand contracts but also be in the position to negotiate them.

You’ll build a knowledge of English for negotiating contracts

In order to negotiate contracts, you must be able to use contractual English, or English used in law and contracts. You also need to know the language and vocabulary for the specific purposes of law and legal applications (usages).

Learning some basic contract-related words will help you read and understand contracts better, which will increase your ability to negotiate them for your benefit.

You’ll protect yourself and your organization from legal risks

Often, people sign contracts blindly without understanding what they’re signing. To protect yourself and your organization from legal risks, you must become familiar with the language of business English for contracts. This will ensure that you don’t sign contracts that will put you at a disadvantage or that you can’t fulfill.

Now, let’s move on to the contractual vocabulary you’ll need for negotiating contracts successfully.

1. Party

The person or company involved in a legal agreement is referred to as the party. For example, if you’re renting an office, you and your landlord would be parties to the rental contract.

If you have a business partner, she’d have to be a party in the rental contract as well.

2. Agreement

An arrangement between two or more parties (people or companies). If you put what’s been agreed on into a legal document, you’re creating a legal agreement with them.

It seems that after months of negotiation, we’ve yet to write up an agreement for this deal.

3. Terms

The conditions relating to what the parties in a contract agreed on. In your rental contract, for example, the terms would include the period of time you’ll be renting for, the agreed rental amount, etc.

Be sure to read the terms of any contract carefully before you sign so you’re not surprised later on.

4. Clause

A condition based on the local law or company rules that defines what the parties must, can or can’t do. For example, your rental contract might include a disturbance clause that follows the neighborhood rules to ensure you don’t bother your neighbors with loud music. Often, the clauses are numbered to make them easier to read and reference.

We need to include a penalty clause in the event that the supplier fails to deliver on time.

5. Offer

An offer is an opportunity, service or item that’s presented to you to consider and think about. For instance, after viewing several offices, you might offer to rent the one in the main financial district.

Wouldn’t it be great if you got a job offer from the company you interviewed with last week?

6. Acceptance

Acceptance is the act of agreeing and saying yes to an offer that’s been made to you.

I’ve issued an acceptance to our equipment supplier to begin shipping our order.

7. Legally binding

In common legal practice, once a contract has been signed by all parties it becomes legally binding or enforceable by law (that is, able to be punished by law).

This contract won’t be legally binding until your manager signs it.

8. Legal expert

Someone with a deep knowledge of the law and whose job is to advice on legal matters and conduct lawsuits in court, such as a lawyer. (In the US, a lawyer is also called an attorney.)

You’d have to consult a legal expert for advice on how to solve that customer complaint.

9. Appendix

An extra page (or pages) usually found at the end of a contract. It’s used to list any additional information or explanations to the main contract.

Look in the appendix for a list of things you need to know about storing heavy equipment.

10. Fine print

The words written in small lettering or font on either the side or end of a contract. The fine print usually includes additional information, usually about limitations, that’s not important enough (but still relevant) for inclusion in the main body of the contract.

Since he didn’t read the fine print, he didn’t realize that his alligator wasn’t allowed in his new pet-friendly apartment.

11. Bargaining power

The influence one party has over another in a negotiation. Having more bargaining power puts you in a better position to win a deal.

You have more years of experience in sales than him so you should have more bargaining power when negotiating your pay package.

12. Standard form contract

A standard form contract, sometimes called a standardized contract, is a contract that contains common or pre-set terms. Businesses within certain industries often use such a contract with small changes to suit their specific purposes.

I’m sure you’ve noticed many mobile phone, hotel and car rental contracts look similar and that’s because they use standard form contracts.

13. Breach of contract

The breaking of a contract’s terms. If your supplier fails to deliver your goods by the date stated in your contract, that would be a breach of contract.

I hope you can meet tomorrow’s deadline for completing the repairs, otherwise your company will be in a breach of contract.

14. In your best interest

If something is done in your best interest, that something will be an advantage or benefit to you.

I think it’d be in your company’s best interest to find a reliable supplier with a good delivery record.

15. Terminate a contract

To terminate a contract is to cancel or end it before it expires. When a contract is terminated, the parties in the contract will no longer need to perform or fulfill the terms of the contract.

Since I’m going overseas to work, I plan to terminate my mobile phone contract.

16. Point of negotiation

Any clause or part of a contract that’s open for discussion and negotiation.

Always remember that your salary is a valid point of negotiation to address at your yearly review.

17. Fail to comply

To not fulfill the terms of a contract. Failure to comply with a contract could result in penalties, legal action and even jail time.

If they fail to comply with the contract one more time, we’ll have to take legal action.

18. File a lawsuit

To file a lawsuit means to sue a party of the contract and bring them to a court of law. Lawsuits may be filed against a company for many reasons including breach of contract or if a worker’s been injured because the company failed to ensure safety standards.

We could file a lawsuit against the factory for poor ventilation but it might take months before the case goes to court.

19. Legal dispute

A disagreement on a legal matter that needs to be settled in a court of law.

We’re going to court over a legal dispute regarding how the goods were damaged on the way to the warehouse.

20. Null and void

If a contract is null and void, it becomes invalid and no longer binding on any of the parties of the contract.

Since our company has stopped selling headphones, our contract with this supplier has become null and void.

So, there you have it: The business English vocabulary that’ll start you off on the path to negotiating a successful contract. Remember that practice makes perfect so keep working on these words until you’re fluent. Good luck!


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Table of Contents

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  1. Business Deal
    1. Advantages of a Business Deal
    2. Disadvantages of a Business Deal
    3. How to Negotiate a Business Deal?
  2. Business Deal Examples
    1. #1. Simon and Schuster
    2. #2. National Hockey Association Case
    3. #3. Chrysler Dispute
    4. #4. Apple Lawsuite
    5. #5. Amazon Case
    6. #6. Starbucks Case
    7. #7. New York City Dispute
    8. #8. Time Warner Case
  3. How Do You Crack a Business Deal?
  4. What is a Business Deal Between Two or More Parties Called?
  5. How Do You Land a Business Deal?
  6. What are the 4 Types of Business Contracts?
  7. Is a Business Deal Between the Seller and Buyer?
  8. How Do You Negotiate a Deal?
  9. Conclusion 
  10. FAQ
  11. What’s another word for business deal?
  12. How do I become a better deal maker?
  13. What is deal strategy?
  14. Related Articles
  15. References 

Various types and sizes of business deals are typical in the course of doing business. Depending on the nature of the business transaction, the parties involved may decide to hire a freelancer or merge into a larger company. Anyone working in a business setting, from workers to independent contractors to business owners, can benefit from learning more about business negotiations and developing their negotiation abilities. This article will define a business deal, highlight its benefits, examples and outline strategies for successfully negotiating one.

When two or more people come together with the intention of starting a business together, they enter into a business contract. The most typical type of business transaction involves one party selling a product or service to another party, who then purchases the item or service. One example of a business transaction that may be necessary is the contracting of a wedding photographer. A merger between two companies is a more substantial business transaction.

Transactions between small businesses or between individuals who have worked together in the past sometimes take place on a more casual, off-the-record basis. The parties involved in the negotiations may only exchange handshakes after communicating via email or having lunch together at work. Even when conducting business on a casual basis, it is still a good idea to put the terms of the arrangement in writing, whether through an email or a simple contract. Formal approaches like lengthy negotiations, contracts, and lawyers are often necessary for a larger corporate agreement.

Advantages of a Business Deal

Any one or more of the following benefits could result from a business deal:

  • If businesses are able to combine their resources into one pool, they can potentially use those resources more effectively.
  • It aids an organization in closing any operational gaps that may occur.
  • When businesses don’t have to worry about tasks that aren’t vital to their mission, they can devote more resources to developing those areas.
  • Deals with other business organizations that are local to the area and have a thorough understanding of the market might help a company get its feet wet when expanding into new territory.

Disadvantages of a Business Deal

Despite its potential advantages, a corporate transaction could have certain drawbacks, as well:

  • A “poor deal” occurs when one party breaches the agreement. This can lead to friction and the waste of resources on both sides. If problems aren’t solved, they could lead to a lawsuit, which would waste time and money and could hurt one or both parties’ credibility.
  • It’s possible that one party underestimated the amount of time and money that would be needed to fulfill an agreement with another business. The company’s fundamental business activities may suffer as a result of the party’s adherence to the terms of the agreement. That could result in lost sales or missed opportunities.

How to Negotiate a Business Deal?

Take note of the following advice to improve your chances of closing a commercial deal:

#1. Invite the Key Players/Decision-Makers to the Table

Having the correct individuals in the room before beginning negotiations is crucial. It’s important to have the decision-makers present in order to get to a consensus. Make sure the opposite side has the authority to make legally enforceable promises before negotiations begin. This will help ensure that you don’t think you’ve reached an agreement with the other party, only to find out later that it needs to be approved by a higher-up in the organization’s chain of command.

#2. Come Prepared.

The key to being a successful direct negotiator is preparation and having a strategy. You need to put in your full effort, utilizing your powerful frontal lobe, adept skills, logic, and reason, if you want to achieve success in negotiations. You can’t just go down one road, so you need to come up with some novel ways of doing things. It’s also necessary to have a plan and consider your options, but it’s equally crucial to be flexible and open to new ideas. To assess whether an alternative to your original idea is a superior one, you need to be receptive to new information and data and to analyze it objectively.

Building a relationship with your negotiation partner is also an important element of getting ready. It’s important that you invest in learning about their business and culture. (Ambien) The feasibility of a merger or partnership can be evaluated more accurately if you have a thorough grasp of the other party (e.g., how will your staff function together, and what potential difficulties might arise).

#3. You Should Never Play it Safe.

It’s possible that you’ve already thought through all the ways in which a bargain like this could benefit you. Also, think very hard about any hazards that might be involved. Risks must be evaluated objectively if a mutually acceptable agreement is to be reached.

#4. Prioritize the Most Important Concerns

If you want to get the most out of your business negotiations, avoid being sidetracked by focusing on the most critical points. Don’t get caught down in the details. Keep your attention where it belongs on the core issues that must be addressed in order to reach a compromise.

#5. Take a Record of the Agreement.

If a compromise is reached over the phone, it’s a good idea to put the terms of the deal in writing. Don’t waste time attempting to figure out every last detail. Since negotiations frequently fail due to a lack of momentum, it is important to document the most important points.

Business Deal Examples

Business deal examples include a range of situations involving both big and small enterprises as well as various sorts of organizations. Numerous stories below involving diverse organizations and enterprises of varying sizes serve as successful business deal examples.

#1. Simon and Schuster

Months of discussions between publishing powerhouse Simon & Schuster and bookstore chain Barnes & Noble stalled in 2013 when Barnes & Noble tried to gain further leverage by cutting orders of Simon & Schuster assets. They took a tough stance during negotiations by canceling reading events featuring authors from the publishing powerhouse. The publishing company’s agents, writers, and editors expressed regret that Barnes & Noble had used them as bargaining leverage, as the bookstore is responsible for selling about 20% of consumer-based books in the United States.

#2. National Hockey Association Case

The National Hockey Association is one of the examples of a business deal to look at. Things moved forward after 113 days when federal mediator Scot Beckenbaugh got involved with the NHL lockout. When tensions rose during discussions, he employed shuttle diplomacy by splitting the parties apart and speaking to each one individually to identify areas of contention and identify areas where compromise might be possible. The final product resolved the issue of pensions for players.

#3. Chrysler Dispute

To ensure its financial stability, Fiat planned to acquire Chrysler. After Chrysler filed for bankruptcy in 2009, Fiat was able to purchase $640 million in government investments from both Canada and the United States in 2011. Attempts were made by Fiat to acquire a VEBA-held share, but the parties could not agree on an appropriate purchase price. The ensuing argument cost an extra $4.5 billion due to a drafting mistake.

#4. Apple Lawsuite

Apple sued Samsung in 2011, alleging that the Korean business had stolen the iPhone’s design to produce its Galaxy range of smartphones. When Apple refused to compensate Samsung for the use of its wireless transmission technology, Samsung filed a countersuit. Both have been accused by the other of copying the design and features of their tablets and smartphones. Both giants showed some flexibility in an effort to avoid going to court. A California judge recommended that they cut the number of patents in dispute in half.

Since Samsung is one of Apple’s top suppliers, executives from both firms expressed a desire to end the issue and go on with business as usual.

#5. Amazon Case

A new pricing mechanism for electronic books was agreed by five major U.S. publishers in 2007 with Apple, in advance of the iPad’s release. E-book costs increased to roughly $14.99 after a publisher threatened to withhold digital versions from Amazon unless it switched to a better format.

#6. Starbucks Case

As another example, Kraft Foods and Starbucks were at odds for three years over the retail sale of Starbucks coffee before an arbitration panel ruled that Starbucks had broken its contract with Kraft. As a result, Starbucks forked up $2.75 billion to Kraft.

Also read Starbucks customer service

#7. New York City Dispute

If New York City and the Teachers’ Union could agree on an evaluation mechanism, the city would see a four percent increase in state aid, amounting to about $250 million in aid and another $200 million in awards. The United Federation of Teachers and ex-mayor Michael Bloomberg failed to reach an agreement before the end of 2012.

On the day before the deadline, both parties said they would be staying up late to negotiate, but they were still unable to come to terms by the following morning. Andrew Cuomo, the state’s governor, has finally instituted an assessment program for use in New York.

#8. Time Warner Case

Lastly, on our list of business deal examples, is this time-warmer case. Due to a financial dispute with TV network CBS, cable giant Time Warner blocked CBS from millions of homes in 2013. This resulted in a huge quarterly loss of TV subscribers, the largest in the company’s history. CBS was hailed as a victor after securing a contract that guaranteed it a twofold increase in programming costs per subscriber in the blacked-out areas. This increase was made possible by the addition of digital rights to provide material to web-based distributors like Netflix.

How Do You Crack a Business Deal?

  • Recognize and Bear in Mind That Negotiations Are A Natural Part Of The Business Environment.
  • Maintain an open mind and use your ears more.
  • Do your homework and come prepared with what you are there for.
  • Aim Big and Strive for It.
  • Never, ever accept the first offer.

What is a Business Deal Between Two or More Parties Called?

A contract is an agreement between two or more parties that is legally binding and establishes the parties’ rights and obligations.

How Do You Land a Business Deal?

  • Bring in the appropriate parties and key decision-makers.
  • Be ready in advance.
  • Never undervalue the hazards you face.
  • Focus on the important topics.
  • Remember the agreement.

What are the 4 Types of Business Contracts?

  • Lump Sum Agreement.
  • Unit Price Agreement.
  • Cost Plus Agreement.
  • Contract for Materials and Time.

Is a Business Deal Between the Seller and Buyer?

  • Ask for a Discount on Several Items.
  • Point Out Any Errors.
  • Display Disinterest.
  • Be Confident….
  • Be Prepared to Leave….
  • Display Hesitation.
  • Become At Ease With Silence.
  • Make them determine the cost.

How Do You Negotiate a Deal?

These are some tactics and methods you can employ while haggling with a salesperson in order to get the price down.

Conclusion 

A business deal or transaction, is an arrangement between two or more parties (often a seller and a buyer) to transact business by exchanging some sort of consideration (such as goods, services, or information) for one another. Each side of a commercial transaction is not without its benefits and drawbacks. Successful commercial transactions are the result of well-planned and executed negotiation methods between the various stakeholders.

FAQ

What’s another word for business deal?

Another word for business deal can be dealing; trade; transaction; dealings.

How do I become a better deal maker?

  • Turn positions into goals and passions.
  • Be the last to make a proposal.
  • Trade and link.
  • Make a proposal to your client.
  • Divide the discrepancy.
  • Build consensus early.

What is deal strategy?

Every deal strategy is unique for each opportunity in the pipeline and describes “HOW” you will take the deal from the early opportunity stage to a closed contract.

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References 

  • upcounsel.com
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Business English vocabulary is the vocabulary about the business contexts, such as finance, banking, international trade, investment, commerce, advertising, marketing etc, so it may be difficult to understand even for many native speakers of English. One another side of learning business vocabulary is that it needs to be specialised on negotiating and making a presentations.

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Top 140 business English vocabulary

  • advantage: favorable or superior position
  • advertise: describe or draw attention to something for promotion
  • advice: guidance or recommendations
  • agenda: a list of items to be discussed at a formal meeting
  • authorization: official permission
  • bill: a piece of paper money
  • brand: a product of a particular company under a particular name
  • budget: an estimate of income and expenditure for a set period of time
  • capital : money or possessions that can be used for business purposes
  • change: coins as opposed to paper currency
  • commission: money paid for commercial transaction
  • competition: making an effort to gain or win something against others
  • competitor: one that is engaged in commercial or economic competition with others
  • confirmation: the truth or correctness
  • costs: an amount that has to be paid or spent to buy something
  • creditor: a person or company to whom money is owed
  • customer: one that buys goods or services
  • deadline: the latest time or date
  • debt: something, typically money, that is owed
  • debtor: one that owes a sum of money
  • decision: a conclusion after thinking about something
  • decrease: become smaller or fewer
  • deficit: spending more money than the money received
  • delivery: to bring and hand over to the recipient
  • department: a division of a large organization
  • difference: being not the same
  • disadvantage: an bad circumstance or condition
  • Discount: price reduction
  • distribution: sharing among recipients
  • drop: let or make (something) fall vertically
  • employ: give work to (someone) and pay them for it
  • employee: worker
  • employer: patron
  • encourage: give support, confidence, or hope
  • enquiry: asking for information
  • environment: the surroundings or conditions
  • equipment: the necessary items
  • establish: set up
  • estimate: roughly calculate or judge
  • exchange: giving one thing and receiving another in return
  • experience:  knowledge or skill from doing or seeing something
  • explanation: a statement to make something clear
  • extend: cover a larger area
  • facilities: necessities for doing something
  • factory: a building where goods are manufactured
  • feedback: information about reactions
  • fund: provide with money
  • get worse: become more severe
  • goal: target, aim
  • goods: merchandise or possessions
  • growth: the process of increasing in physical size
  • guarantee: a formal promise or assurance
  • improve: make or become better
  • improvement: instance of getting better
  • increase: instance of growing
  • industry: economic activity of processing of raw materials and manufacture of goods
  • inform: give facts or information; tell
  • install: place or fix in position ready for use
  • instructions: tell someone how to make or use something
  • interest: money paid regularly at a particular rate for the use of money lent
  • inventory: a complete list of items such as property, goods in stock, or the contents of a building
  • invest: expend money with the expectation of achieving a profit or material
  • invoice: bill
  • join: link; connect
  • knowledge: facts, information, and skills acquired by a person
  • lend: grant the use of on the understanding that it shall be returned
  • limit: a point or level beyond which something does not or may not extend or pass
  • loss: having less or none of something
  • maintain: cause or enable to continue
  • manage: administer; run
  • margin: the edge or border of something
  • market: an area in which commercial dealings are conducted
  • mention: a reference to someone or something
  • objective: goal
  • obtain: get, acquire
  • offer: to provide or supply something
  • opinion: a view or judgement
  • option: a thing that may be chosen
  • order: give an authoritative direction; request something
  • organise: order
  • output: an amount that a person, machine, or organization produces
  • owe: have an obligation to pay or repay
  • own: possess
  • participate: take par
  • pay: give money that is due
  • payment: an amount paid or payable
  • penalty: punishment
  • permission: consent; authorization
  • possibility: a thing that may happen
  • preparation: making ready or being made ready
  • present: give something formally or ceremonially
  • prevent: keep from happening
  • price: the amount of money a sold item
  • process: a series of actions or steps taken for a particular end
  • produce: make or manufacture from components or raw materials
  • product: an article or substance that is manufactured or refined for sale
  • production: the action of making or manufacturing
  • profit: financial gain
  • promise: a declaration or assurance that one will do a particular thing
  • promotion: activities of advertising something; raising someone to a higher position
  • provide: make available for use; supply
  • purchase: get something by paying for it
  • raise: lift or move to a higher position or level
  • reach: stretch out in order to touch or grasp something
  • receive: get
  • reduce: make smaller or less in amount, degree, or size
  • reduction: making smaller or less in amount
  • refund: pay the money back
  • refuse: showing that one is not willing to do something
  • reject: refuse
  • remind: cause (someone) to remember someone or something
  • remove: take (something) away or off; eliminate
  • repairs: fixing or mending something
  • reply: a verbal or written answer
  • report: give a spoken or written account of something
  • resign: voluntarily leave a job or other position
  • respond: say something in reply
  • responsibility: something that it is your job or duty
  • result: a consequence, effect, or outcome of something
  • retailer: a person or shop that sells goods to the public
  • return: come or go back; give, put, or send (something) back
  • rise: go up; move from a lower position to a higher one
  • risk: a situation involving exposure to danger
  • salary: a fixed regular payment
  • sales: number of sold items;
  • schedule: programme; a plan for a process or procedure
  • sell: give or hand over (something) in exchange for money
  • separate: cause to move or be apart
  • share: one of the equal parts into which a capital of a company is divided
  • shipping: sending goods from one place to another
  • shorten: make or become shorter
  • signature: a letter or figure of a person’s identification in authorizing a document
  • stock: the goods or merchandise of a business for sale or distribution
  • success:  accomplishment of an aim
  • suggestion: an idea or plan put forward for consideration
  • supply: provide; make something available
  • support: give assistance to
  • target: aim; goal
  • transaction: a business deal
  • transport: take or carry from one place to another

Flip the card memory game

Read the definition on the card below and then guess the meaning of it. To check your answer click on the card to see the answer.


SIMILAR PAGES:
❯❯ Sales and Marketing vocabulary for business English
❯❯ Money, Finance and Banking vocabulary for business English
❯❯ Advertising vocabulary for business English
❯❯ Project Management vocabulary for business English
❯❯ International Trade (Import-Export) vocabulary for business English
❯❯ Human Resources vocabulary for business English
❯❯ Investment Vocabulary for business English

Business English vocabulary exercises

Memory cards

Worksheets

External resource links:
A nice source is also here. You can click here to read about business English or here to listen podcasts about business English. This is another source to learn business English online. You can also see some nice videos on Youtube here.

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