Dan's Desk

Evidence from Negotiations

Written by Dan Gallatin | Feb 26, 2020 6:00:00 AM

I have a number of very successful businesses I represent. It's the work I enjoy the most. Getting deals done and helping to create profits is a better use of money. One of the primary benefits of using a lawyer to negotiate deals is the creation of evidence in the course of the negotiations.

Rarely is it the case that a contract is presented and signed without there being any questions or exchanges. For example, Company A in Hugo gets a call from Customer John in White Bear Lake. John inquires about a substantial order and the details that go with it. Company A customarily will respond that it would be easier to just send some information via e-mail. From there, exchanges occur and an order is finalized.

If there becomes a problem between Company A and John, the e-mails and phone calls will usually be evidence. While the Parol Evidence rule can preclude the introduction of the exchanges at trial, the exchanges will nonetheless be part of the litigation.

It is those exchanges that must be carefully worded, memorialized, and preserved. They can have nearly as much weight as the contract terms themselves. A lawyer will be (or should be) very careful in what the wording of the exchanges is and to memorialize conversations with contemporaneous notes or confirming e-mails.

The negotiating lawyer ultimately will be a witness, and hence not the litigator in the case. That too can be positive because, despite common opinion, lawyers make good witnesses and are found credible.

I do not recommend using a lawyer on run of the mill negotiations. That would just be impractical. But, if something seems a little out of the ordinary or represents a potentially significant profit (or loss), I recommend you get professional help from a lawyer.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. All information contained in links are the property of the linked site.