《国际商务英语谈判与沟通》-10

ChapterTen

InternationalBusinessContractNegotiationsSection5

StrategiesandSkillsofInternationalBusinessContractNegotiationsSection6

ACaseStudyofInternationalBusinessContractNegotiations上一页返回Section1

FormationofaContractinInternationalBusinessNegotiations1.1

CategoriesofbusinesscontractsBasedonthedifferentfunctionsandcontentsofthetradeform,contractscanfallintothefollowingkinds:(1)SalesContractsorPurchaseContracts.(2)ContractsforJointVenturesorJointProduction.(3)ContractsforCooperation.(4)ContractsforCompensationTrade.(5)ServiceContracts(ContractsforForeignLabourService;ContractsforEmployment).(6)ContractsforTechnologyTransferandtheImportationofEquipmentandMaterials.(7)Processing下一页返回Section1

FormationofaContractinInternationalBusinessNegotiations(8)AgencyContracts(GeneralAgencyAgreement;AgencyAgreement;SoleAgencyAgreement).(9)ContractsforCreditsandLoans.(10)ContractsforInternationalLeasingAffairs.(11)ContractsforInternationalBuild-Operate-Transfer(BOT).1.2

StructureofbusinesscontractsAformalwrittencontract(CommonLawSystem)generallyconsistsofthefollowingparts.(1)Title.e.g.SalesContract,ContractforCompensationTrade.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiations(2)Preamble.1)Dateofsigning.2)Signingparties.3)Eachparty’sauthority.4)Placeofsigning.5)RecitalsorWHEREASclause.(3)Body.1)Definitionclause.2)Basicconditions.3)Generaltermsandconditions:a.Duration.b.Termination.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsc.Forcemajeure.d.Assignment.e.Arbitration.f.Governinglaw.g.Jurisdiction.h.Notice.i.“Entireagreement”clause.j.Amendment.k.Others.(4)Finalclauses.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiations1.3

TermsofbusinesscontractsAterm,whichisoftencalledaclause,ofacontractexpresseswhatthepartiestothecontracthaveagreed.Thetermsandconditionsstimulatedinacontractdefinetherightsandobligationsofthepartiesarisingunderthecontract.Thesetermsandconditionsareexpectedtobewordedwithgreataccuracy,cautionandprudence,whicharetheprerequisitefortheguaranteeofeachside’sinterest.Termsmaybeexpresslyagreedbythecontractingpartiesorimpliedbythecourtsorbystatutorylegislation.Therearethreetypesofterms:conditions,warrantiesandinnominateterms.Aconditionisabasicandimportantpartofthecontract.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsIfonepartybreachesacondition,thentheotherpartymayendthecontractorrefusetoperformtheirpartofthecontract.Ontheotherhand,awarrantyisnotvitaltothecontract.Ifonepartybreachesawarranty,thentheotherpartycanonlycontinuewiththecontractandthensuefordamages.However,contractscanalsohaveimpliedterms.Thesetermsarenotstatedexpresslybytheparties,buttheyareregardedasbeingtermsofthecontract.Knowingthesetermswellwillassistinclearlystatingwhatspecificationsandconditionsthecounterpartmustofferduringthenegotiation.Differenttypesofcontractsmaycontaindifferentclauses,butaforeigneconomiccontractshall,ingeneral,includethefollowingterms:上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.1Thecorporateorpersonalnamesofthecontractingpartiesandtheirnationalitiesandprincipalplacesofbusinessordomicile.No.2Thedateandtheplaceofthesigningofthecontract.No.3Thetypeofthecontractandthekindandscopeoftheobjectofthecontract.No.4Quantity.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsIninternationalbusinesstransactions,theamountorvolumeofdeliveredandacceptedcommoditiesisbasedonthearticlesconcerningthequantityofcommoditiesinthecontract.Shouldquantitynotbespecific,paymentbythebuyertothesellerisdifficulttobeexplicated.Inaddition,differentquantitymayleadtodifferentcontractprices.Intheeventthecommoditysuppliedbythesellerislessthanwhatisstipulatedinthecontract,thebuyerhastherighttorejectthecommodityand/ordemandcompensationforlosses.Whileifthecommoditysuppliedinexcessofcontractedquantity,thebuyerisentitledtochoosetoacceptwholly,rejectwhollyoronlyrejecttheexcessivepart.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsBecausedifferentproductsrequiredifferentkindsofmeasurementanddifferentcountriesmayusetheirownunitsofmeasurement,itisnecessarytofindouttheunitsofmeasurementtobeadoptedinthecontract.Someofthecommonlyusedunitsareasfollows:①Weight:metricton,longton,shortton,kilogram,pound,ounce,gram,etc.②Numbers:piece,pair,set,dozen,gross,etc.③Length:meter,foot,yard,mile,inch,etc.④Area:acre,squareyard,squarefoot,squareinch,etc.⑤Volume:cubicmeter,cubicfoot,cubicyard,etc.⑥Capacity:liter,gallon,quart,etc.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.5Priceterms.Alsoknownastradeterms,deliverytermsorcommercialterms,arethestandardizedtermswhichdefinethetradecontractresponsibilitiesandliabilitiesbetweenthebuyerandtheseller.Theuseofpricetermsgreatlysimplifiestheprocessofnegotiationsandpreparationofthesellerandthebuyerandsavestimeandcostofthetransaction.RefertotheInternationalRulesfortheInterpretationofTradeTerms2010forfurtherinformation.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.6Insuranceclauses.Theinsuranceclauseinacontractshouldspecifywhowillaffecttheinsurance,typeofcoverage,whenandwheretheriskorlossesofdamagepassesfromtheexportertotheimporter,etc.InthecaseofaCIFcontract,theexporterwilleffectinsuranceimmediatelyafterreceivingtheletterofcreditfromthebuyer.Forinsurance,hewillpreparenecessarydocumentsandfillinanApplicationforInsurance.Insuranceshallbeaffectedbeforeshipmentismadeorbeforetheconsignmentisdeliveredtothecarrier.InthecaseofanFOBorCFRcontract,thebuyerwillaffectinsuranceandopenpolicywouldbepreferredtoavoidthefailureofinsurance.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.7Packingandshippingmarks.InaccordancewithCISG,supplyinggoodscontainedorpackagedinthemannerrequiredbythecontractisoneofthemainobligationsoftheseller.Shouldthedeliveredgoodsnotbepackagedascontracted,thesellerisinbreachofthecontract.Detailedandspecificstipulationswithrespecttothepackingofgoodsareusefultoavoidforthcomingdisputes.Thekindofpacking,materialusedforpacking,packingstyle,transportingmarking,andnumberoramountorvolumeofcommodityinapackagearethemaincontentoftheclauseofpackingininternationalbusinesscontracts.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsAspackingcostsareincludedinthetotalpriceofgoods,itisunnecessarytolistitinthisclause,but,ifthebuyerrequiresspecialpacking,itshallbespecifiedthat“costsorexpensesforextrapackingshallbeforthebuyer’saccount.”Inaddition,indraftingpackingclauses,regulationsonpackingoftheimportingcountryandsomerelevantinternationalcustomsshallbetakenintoconsideration.Themarkofshipping,orindicationorwarningisoftenprintedonlargepacking.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.8Quality.Theclausesofqualityareoftenregardedasconditionsforinternationalbusinesscontractsinmanylawsystems.Theclauseofqualityaimstostipulatetheimmanentqualityandexteriorconfigurationofcommoditycontracted.Shouldthecommoditysuppliedbythesellernotconformwiththisclause,thebuyerwouldbeentitledtodemandcompensationforlossesandevenrejectthecommodityanddissolvethecontract.Toavoidforthcomingdisputes,thedetailedstipulationaboutthequalityofcommodityshallbeprovidedininternationalbusinesscontracts.Ininternationaltrade,fourmeansaregenerallyusedtoexpressthequalityofproducts.Theyare:salesbysample,salesbyspecification,gradeorstandard,salesbytrademarkorbrand,andsalesbydescription.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.9Termsofpayment.Itisoneofthemostimportantthingsinacontractanditusuallytakesmoretime,energyandcaretonegotiateandreachanagreementbybothinvolvedparties.Itisrequiredthatthefollowingarticlesbespecifiedinthecontract.Currencyofpayment:USD,Sterling,HKDorRMB,etc;Methodofpayment:progressiveorscheduledordeferredpayment;Meansofpayment:banktransferorcheckordraftorremittance(paymentinadvance,cashinorder,openaccount;T/T,M/T,D/D)orL/C.L/CisthemostfrequentlyadoptedmodeofpaymentinChina’sforeigntradeforitisreliableandsafeforbothsides.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsSometimes,thebuyerrequestspaymenttobemadebycollectionthroughbanksunderthetermsofdocumentsagainstpayment(D/P)ordocumentsagainstacceptance(D/A).No.10Termsofshipment.Whenshippinggoodsbyoceanfreight,peoplemusttakeintoaccocunttwothings:①toarrangetheportofshipmentandtheportofdestination.②toarrangethetimeofshipment.Whensettlingthetimeofshipment,theexportershouldtakeeverypossibilityintoconsideration,suchasthesupplyofgoods,internaltransportconditions,andexternalmarketquotations.Thetimeofshipmentshouldbemadesuitabletobothsellersandbuyers.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.11Commodityinspection.Itisanindispensablepartofinternationaltradeandhowtostipulatetheplaceandtimeofinspectionandtoexercisetherightofinspectionisthecoreofconcludingtheinspectionclauseofthecontract.Theinspectionclauseininternationaltradecontractsusuallycontainsstipulationsontheinspectionright,thetimeandplaceofinspectionorre-inspection,theinspectionorganization,theinspectionitemandtheinspectioncertificate.Therearethreewaysofstipulatingtheplaceandtimeofinspectioninthecontract:Shippingqualityandweight,landedqualityandweightandinspectionattheportofshipmentandre-inspectionattheportofdestination.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.12Claims.Whenonepartytoacontractfailstofulfillhisobligationsandcausestheotherpartyfinanciallosses,thelatterwoulddemandtheformertocompensatehimforthelosses.Therearetwoformsofclaimclauses:thediscrepancyandclaimclause,andpenaltyclause.Apenaltyisaformoffinancialpunishmentonehastobearifonefailstohonoracontractorimplementsthecontractinanimproperway.Thepartywhobreaksthecontractshouldpayapenaltytotheotherpartyinaccordancewiththecontracteventhoughtheotherpartyincursnodamage.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.13Forcemajeure.Itincludeswars,strikes,governmentimportandexportrestrictionsandothernaturaldisasters,etc.Thesellerorthebuyerwillnotbeheldresponsiblefornon-deliveryorbreachofcontractduetoForceMajeure.Theforcemajeureclauseusuallycontains:thescopeofforcemajeureevents,timelimitofnotifyingtheotherpartyandtheissuerofthecertificate.Thereareusuallytwoconsequencesofforcemajeure:theterminationofthecontractandpostponementofthecontract.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsNo.14Arbitration.Arbitrationisanadjudicatoryprocessthatisheldbeforeanobjectivethirdpartywhorendersadecisionbasedontheadversarialpresentationsofthedisputingparties.Althougharbitrationmaybeappealingforanumberofreasons(forexample,itislessexpensiveandfasterthanacourttrial),oneshouldapproachitinaninternationalsettingwithcaution.Inmanycountries,arbitrationisunavailableorisjustbeingdeveloped.Moreover,arequestforarbitrationmaybeviewedasapersonalinsulttotheforeigncounterpart,andinsteadofbeingameansofdisputeresolution.Itmaydestroythepotentialforsettlementthroughprivatenegotiations.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsAsfortheplaceofarbitration,itisalwaysadvisableforthepartiestostipulateitinthecontracttoavoidfuturecontroversy.Theycouldalsospecifythenameofthearbitrationinstitution,theproceduralrulesorbetterstilltheapplicablelaw.Incross-bordertransactions,partiesoftendesignatethattheirdisputeswillberesolvedthroughaninternationallyrecognizedarbitrationorganization.No.15Liabilitiestopaycompensationandotherliabilitiesforthebreachofcontract.No.16Thewaysforsettlingcontractdisputes.上一页下一页返回Section1

FormationofaContractinInternationalBusinessNegotiationsAccordingtointernationalpractice,therearefourwaysofsettlingdisputesbetweentwopartiesofabusinesstransaction:thenegotiation,conciliation,arbitrationandlitigation.Thetradetermsofasalescontractcanbeclassifiedasmajortermsandconditions(orspecificterms)andgeneraltermsandconditions(Table10-1).Ifthecontractdoesnotprovidethetermsthatarenecessarytocompletethetransaction,insomejurisdictionsthecontractwillnotbeenforceable.Inothers,thecourtswillimplytermsintothecontract,whichmayormaynothavebeenintended.Therefore,alwaysreviewthecontracttoseeifitincludestherequiredterms.上一页返回Section2

FeaturesofInternationalBusinessContractNegotiations2.1

CharacteristicsofbusinesscontractsBeforewegotothefeaturesofinternationalbusinesscontractnegotiations,let’sdiscusssomeofthecharacteristicsoftheinternationalbusinesscontract.2.1.1

Itisanagreementbetweenthepartiesfromdifferentcountriesorregions.Thepartiesinvolvedinsigningthecontracthavetobegovernedorregulatedbythelawprevailingintheircounterpart’scountryorregion.Inaddition,sincethecontracteditemsareshippedacrossaborderandaresubjecttocustomsregulations,morecomplicatedissuesareinevitablyconcerned.下一页返回Section2

FeaturesofInternationalBusinessContractNegotiations2.1.2

Thelawsofallthepartiesinvolvedarebinding.Accordingtotheprincipleofnationaljurisdiction,thebehaviorsofthepartiestothecontractandtheclausesinthecontractsignedbythemmustconformwiththelawofthecountriesorregionstheyarefrom.Thatistosay,theinternationallawanddomesticlawarebothinforce.2.1.3

Theinternationaltreatiesandtradepracticesarebinding.Aninternationalbusinesscontractreflectstheinteractionofcross-bordereconomicactivities.Itisinevitablyunderthecontrolofrelevantinternationalmultilateralorbilateraltreatiesandmustbeinaccordancewithinternationaltradepractices.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiations2.1.4

Itisaffectedbyinternationalpoliticalrelationships.Thepoliticalrelationshipsbetweenthesecountriesorregionsaswellassubtlegeographicpoliticalfactorsmayhavepositiveornegativeimpactsontheimplementationofthecontract.2.2

KeyfeaturesofinternationalbusinesscontractnegotiationsThefollowingarethemainfeaturesofinternationalbusinesscontractnegotiations.2.2.1

Thegoalsofnegotiationsarespecific,involvingthesubstantiveissues.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiationsAftertheoverallpreparationandinitialcontactwitheachotherinthepreviousroundsofnegotiations,eachsidehasabasicunderstandingoftheothersideandformstheirrespectiveprogramsforthenegotiation.Withtheestablishmentofthegoodatmosphereforthetalk,thenegotiationnaturallyturnstothesubstantivephase.Therefore,bothpartiesarelikelytonegotiatethesubstantiveissues.Forexample,theycenteronthecontractclausessuchastheprice,quality,quantity(e.g.,unitofmeasurementanditsmethod,calculationofweight,moreorlessclause),thetermsofpayment(e.g.,remittance,collection,letterofcredit,letterofguarantee,paymentbyinstallments,deferredpayment),etc.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiationsBothsidestryeverymeanstotakeadvantageoftheirownstrengthsandemployvariouskindsofnegotiationstrategiesandskillstoachievetheirdesiredresults.2.2.2

Effectivenessoftheproposeddealinthecontractisstipulatedbylaw.Thestageofsigningacontractisthesubstantivestageinthewholeprocessofbusinessnegotiations,whichmarksthebeginningofcooperation.Anditalsoprovidesthepossibilityandfeasibilityforthebusinesstransaction.Ifonepartydoesnotperformthecontractclauseinthedeal,theywillbreachthecontractandsufferpenalties.Becauseofthis,thetwosidesconsiderallthetermsofthecontractverycarefully.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiationsAtthebeginning,itisimportanttorecognizethatonewillnotbeabletocovereverygapandfillalltheloopholesinthecontractprovisions.Thereasonissimple:onedoesnotknowthemall.Whileonecantrytoplugeachgap,theonethatismissedwillbetheonethatislaterdisputedandrenegotiated.Onemaynotbeabletocreatetheperfectcontract,butneverthelessdraftthecontractprovisionsasclearlyaspossible.Themoredefinitivetheterms,thefewerthedisputes.Useverypreciselanguage.Lookfortheweaklinks.Andremember,whenthingsdogowrong,correctthecontractprovisionstoavoidthesamemistakeinthenexttransaction.Indraftinginternationalcontracts,itisextremelywisetogothrougheachcontractprovisionwitheachpartyandexpresslyaskthemtoindicatetheircomprehension.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiations2.2.3

Astrong,effectiveandauthoritativeteamisaprerequisitetoasuccessfulcontractnegotiation.Incontractnegotiations,thechiefnegotiatorsofbothsidesarebasicallytheprojectdirectorortheauthorizedagentoftheenterprise,whohavethepowerofdecision-making.Inthisway,themaintermsofthecontractcanbekeptstrictlyaccurateandrigorousandfinalized.Contractnegotiationsinvolvetheprocessofdiscussingandcompromisingoncontracttermsinordertoreachthefinal,approveddraftofacontract.Somecontractsarenon-negotiable,asisusuallythecasewithleasesandmanufacturerwarranties.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiationsHowever,therearecontracts—likebusiness,realestateandfinancialcontracts—thatmaybenegotiatedinordertoreachthetermsthataresatisfactorytoallpartiesinvolved.2.3

ImportantstepsofbusinesscontractnegotiationsThegeneralprocedureofbusinessnegotiationsmayvarydifferently,butthegeneralproceduresforthecontractnegotiation—fromtheinitialcontacttothefinaldeal—usuallycoverthesesteps:theinquiry,offer,counter-offerandacceptance.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiations2.3.1

InquiriesAninquiry/enquiryisarequestforbusinessinformation,suchaspricelists,catalogue,samples,anddetailsaboutthegoodsortradeterms.Thesellerandthebuyerbothcanmakeaninquiry.2.3.2

OffersAccordingtoCISG(UnitedNationsConventiononContractsfortheInternationalSaleofGoods),anofferisdefinedasasufficientlydefiniteproposaladdressedtooneormorespecificpeopleforconcludingacontract,necessarilyindicatingtheintentionoftheofferortobeboundincaseofacceptance.Inotherwords,itreferstothetradingtermsputforwardbyofferorstoofferees,onwhichofferorsarewillingtoconcludebusinesswithofferees.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiations2.3.3

CounteroffersCounteroffersmeanthattheoffereedoesn’taccepttheofferwhollyandputforwardsomeadditions,modification,limitations,etc.astothebasictermsandconditionscontainedintheoffer.Acounterofferisalsocalledanewoffer.Namely,whenanoffereehasreceivedanoffer,hdisagreesordoesnotagreetotallyontheconditionsputforwardintheoffer.Inordertoconsultfarther,theoffereeproposessuggestionstoamendoraltersometermsoftheoffer.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiations2.3.4

AcceptanceAcceptancereferstoastatementmadebyoralorwrittenorotherconductsoftheoffereeindicatingassenttoanoffer.Acceptanceshallbemadebyaspecificoffereeandreachtheofferorwithinthetimeofvalidity.Ofcourse,itisnotnecessarytohaveallthelinkstakenforeverytransaction.Sometimes,onlytheofferandacceptancewilldo.Inexport/importtradeasalescontractisalegaldocumentmadebyandenteredintobetweenasellerandabuyeronthebasisoftheirofferandacceptance.Therightandobligationofboththepartiesaredefinitelystipulatedinthecontract.上一页下一页返回Section2

FeaturesofInternationalBusinessContractNegotiationsThecontractisbindingonthemall.Inthecourseofbusinessnegotiations,anofferwithengagementoracounter-offerisaccepted.Thetransactioniscompletedandacontractualrelationshipbetweentheofferorandoffererisconcluded.上一页返回Section3

ObjectivesofInternationalBusinessContractNegotiations3.1

BriefintroductionofthegoalsofbusinessnegotiationsThegoalofthenegotiationistoproduceabindingcontractwhichcreatesspecificrightsandobligationsforbothparties.Atthebeginningofnegotiation,thenegotiatorsshouldknowwelltheirdesiredresultsandnotbewillfullymanipulatedbytheircounterparts.Onlywithadefinitepurposewillthenegotiatorsgraspthekeytothenegotiationandrealizetheirexpectedpurpose.Negotiatorsalsoneedtoputforwardwhattheyexpect,takeafirmstandandmakecleartheirposition.Inmoderntimes,theaimofnegotiationsshouldfocusoncreativecollaboration,ratherthantraditionalconfrontation,orawinner-takes-allresult.下一页返回Section3

ObjectivesofInternationalBusinessContractNegotiationsThemodernandidealaimofnegotiationsisforthoseinvolvedinthenegotiationprocesstoseekanddevelopnewwaysofarrivingatbettercollaborativeoutcomes,bythinkingcreativelyandworkingincooperationwiththeotherside.Negotiatingshoulddevelopapartnershipapproach—notanadversarialone.Assuch,negotiatingteamsandstaffresponsiblefornegotiatingcanbeencouragedtotakeacreativeandcooperativeapproachtofindingbettersolutionsthanmightfirstappearpossibleorhavehistoricallybeenachievedinpractice.上一页下一页返回Section3

ObjectivesofInternationalBusinessContractNegotiations3.2

ObjectivesofbusinesscontractnegotiationsTheobjectivesofinternationalbusinesscontractnegotiationsaresummedupasfollows.(1)Explainclearlyallessentialprerequisites,termsandconditions.(2)Thegoodsorservicestobeprovidedareunquestionablydefined.(3)Compensationisclearlystated:thetotalcost,paymentschedule,andfinancingterms.(4)Acknowledgmentof:effectivedates,completion/terminationdates,andrenewaldates.上一页下一页返回Section3

ObjectivesofInternationalBusinessContractNegotiations(5)Identifyandaddresspotentialrisksandliabilities.(6)Defineandsetreasonableexpectationsforthisrelationshipcurrentlyandintothefuture.Onceacontractisconcluded,boththesellerandthebuyershouldperformtheirobligations.Thesellermustdeliverthegoods,handoveranydocumentrelatingtothemandtransferthepropertyinthegoods,asrequiredbythecontract.Thebuyermustpaythepriceforthegoodsandtakedeliveryofthemasrequiredbythecontract.上一页返回Section4

PrinciplesofInternationalBusinessContractNegotiations4.1

BasicprinciplesofbusinesscontractnegotiationsInbusinesscontractnegotiations,allthepartiesshouldabidebythefollowingprinciples.4.1.1

EqualityandmutualbenefitprinciplesInmodernnegotiation,equalityandmutualbenefitareaverybasicprinciple.Everypartyshouldbewellpreparedforthenegotiationandreadytosatisfyeachother’sneedsonanequalbasis.Alwayslookforanacceptablecompromisethatismutuallybeneficialoracceptabletoallparties.下一页返回Section4

PrinciplesofInternationalBusinessContractNegotiations4.1.2

SincerecooperationAnegotiationinitselfisakindofcooperation.Inbusinessnegotiations,bothpartiesareworkingtogethertowardscommonorconvergentgoals.Throughnegotiations,bothpartiesareseekinganalternativearrangementofabusinesssituationsothatattheendofthenegotiationtheyfeelthisresultismuchbetterthanthatwhentheyfirststarted.Thepurposeofthisistoseekawin-winsituationinsteadofawin-loseone.Intheformer,thepartiestothenegotiationconsiderthemselvestohavecompatiblegoalsand,therefore,assumebothpartiesshouldstandtogainfromthefinalagreement.They,therefore,cooperatewitheachothertodeviseamutuallybeneficialsolution.上一页下一页返回Section4

PrinciplesofInternationalBusinessContractNegotiationsInthelattercase,however,thepartiestothenegotiationseeeachother'sgoalsasincompatibleand,therefore,believeonepartycanonlygainattheexpenseoftheother,thus,puttingeachpartyincompetitionwiththeother.4.1.3

FlexibilityprinciplesAnegotiationisagive-and-takeprocess,sobepreparedtobeflexible.Knowwhatconcessionsyouarewillingtomake.Asuccessfulnegotiationrequirescompromisefrombothsides.Bothpartiesmustgainsomething,andbothpartiesmustlosesomething.Youmustbepreparedtogivesomethinguptowhichyoubelieveyouar