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Research Paper (postgraduate) from the year 2017 in the subject Business economics - General, University of Dortmund, language: English, abstract: This paper analyzes the connection between negotiations and contracts. Negotiations and contracts are essential elements in any business and it important to understand how they affect day to day operations of the business (Strulovici, 2015). While negotiations bring about parties for the purpose of agreeing on a business deal or resolving a problem, a contract is the signed agreement that outlaws the terms of engagement between the parties involved. Negotiation is an important aspect of business because through negotiation there is room to make business deals or even settling disputes that may arise following a business undertaking by individuals or organizations. Parties engage in negotiation when seeking to establish business partnerships, and when discussing collective bargaining agreements among workers and their employers or business contracts between a hotel and events planners.