Avoid the common pitfalls in contract negotiations

Negotiating and entering into contracts is a natural part of both everyday life and larger projects. Whether you are buying a home, contracting a craftsman service or selling something on Finn.no , it is important to be aware of how agreements are made – and which pitfalls you should avoid. Here is a practical guide for you as a private individual in Norway.

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When is an agreement binding?

Many people believe that an agreement is only valid when it is signed in writing. This is not true. In Norwegian law, the principle of freedom of form applies, which means that an agreement is just as binding verbally as it is in writing. The decisive factor is whether the parties have given each other reasonable grounds to believe that they intended to be bound.

A classic example is: You offer your neighbor to buy your bike for 1000 kroner, and he says "yes". The agreement is then concluded, even without written documentation. This also means that you cannot simply withdraw, unless there are agreed upon reservations.

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Common pitfalls in contract negotiations

1. Unclear or incomplete agreements

One of the biggest mistakes individuals make is entering into agreements without specifying important details. For example:

• What should be delivered, and when?
• What is the price and how should it be paid?
• Who is responsible if something goes wrong?

Lack of precision can lead to misunderstandings and conflicts, so it may be a good idea to get help from a lawyer if you are unsure about how the agreement should be drafted.

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2. Oral agreements without evidence

Although oral agreements are binding, they are difficult to prove. In a dispute, words often stand against words. Therefore, you should always get the agreement in writing – either on paper, by email or SMS. It gives you peace of mind if something goes wrong later.

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3. Uncertainty about the time of conclusion of the agreement

In negotiations, it can be unclear when a binding agreement has actually been reached. If you do not want to commit until everything is signed, you should clearly communicate this – for example, by taking a signing reservation. This will prevent the other party from thinking the agreement has been reached before you are ready.

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Tips for safer contract negotiations

• Prepare well : Think through what you want to achieve, what conditions are important to you, and how far you are willing to go.
• Be clear : Communicate clearly and unambiguously, and avoid ambiguous wording.
• Get it in writing : Document the agreement in writing, even if it's just a simple email.
• Consider legal help : For larger deals, it may be a good idea to involve a lawyer for advice.

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Do you need legal assistance?

The rules surrounding contract negotiation and contractual issues can be more complex than they first appear. Uncertainty about what has been agreed, when an agreement was entered into, or whether the other party has kept their end of the agreement can have major financial consequences.

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At Insa advokater you will receive assistance from an experienced contract law attorney with good insight into contract law and negotiation techniques. Whether you need help drafting a solid contract, or are in the middle of a conflict, an early legal assessment can be crucial to securing your interests.

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