Renegotiation refers to the process of modifying or altering the terms and conditions of an existing agreement or contract between two or more parties. It involves revisiting and re-negotiating the terms, provisions, clauses, or obligations of the original agreement in order to update, improve, or address any issues that may have arisen.
Renegotiation typically occurs when one or both parties involved in a contract seek to modify certain aspects due to changing circumstances, economic conditions, legal requirements, or unforeseen events. The renegotiation process allows for discussions, negotiations, and potential compromises between the parties involved to reach a revised agreement that better suits their current needs.
In a renegotiation, the parties may aim to modify various components of the original agreement, such as pricing, payment terms, delivery schedules, performance expectations, liability provisions, or any other relevant terms. The objective is to ensure that the revised agreement reflects the new circumstances, aligns with the parties' interests, and maintains a fair and equitable relationship.
Renegotiation requires effective communication, negotiation skills, and a level of mutual understanding and cooperation between the parties involved. It often involves a written agreement that outlines the revisions, and the new terms are typically legally binding upon reaching an agreement.
Overall, renegotiation allows for flexibility and adaptation to changing circumstances while preserving the integrity of the original agreement. It provides an opportunity for parties to reassess and redefine their obligations and expectations, ultimately strengthening the business or legal relationship between them.
