Bargaining power is often discussed in terms of: who has more leverage? or who has the upper hand? Better said, a party has bargaining power if he/she has the ability to cause a preferred outcome in a transaction. In general, it can be the difference between controlling the entire transaction to terms of your liking and “having no other choice, but to sign the agreement.” There are many factors that can come into play, such as, time, money, influence, authority, etc., that can shift the bargaining power between the parties. Knowing when you have the upper hand is crucial when faced with the challenges that come with negotiating a contract.
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