2 Business Negotiation andppt课件

1、,Chapter Two,Business Negotiation and Conclusion of the Contract, the form and contents of business negotiation the general procedures of business negotiation the relevant legal rules on business negotiation the main contents of the contract how to interpret clauses in the contract,At the end of thi

2、s chapter, you should be able to understand:,The Contents of Chapter 2,2.1 Form and Contents of Business Negotiation 2.2 General Procedures of Business Negotiation 2.3 Conclusion of the Contract 2.4 Form and Contents of the Contract,The procedure of a transaction for the international sale of goods,

3、Three stages: Preparation before business negotiation Business negotiation and the conclusion of a sales contract The implementation of a sales contract.,Negotiations are used as means of deciding the terms by which a company may initiate, carry on, or terminate operations in a foreign country. They

4、 have been extended to other operating arrangements, such as licensing agreements, debt repayment, and large-scale export sales. The sales contract offers guidelines for the international business practice. But before business contract is concluded, much work has to be done in business negotiation.

5、And before we undergo business negotiation, we also need to do some preparations.,2.1 Form and Contents of Business Negotiation,Written communication for international transactions letter cable telex fax e-mail MSN,Verbal communication for international transactions, in person by telephone,Business

6、negotiation in international trade is the process by which the seller and the buyer negotiate about the trade terms of a transaction with the intent of reaching an agreement about the sales of goods.,(1) the subject matter of the contract (2) the price of the goods; (3) the liabilities of the seller

7、; (4) the liabilities of the buyer; (5) the methods to prevent the occurrence of disputes and methods to settle disputes in case there is any,The trade terms,The trade terms of a sales contract can be classifies as major terms and conditions (or specific terms) and general terms and conditions:,2.2

8、General Procedures of Business Negotiation,Enquiry,Offer,Acceptance,Sales Contract,Counter-offer,Sample Enquiry Letter,Dear Sirs, We are interested in buying large quantities of steel screws in all size. We would be obliged if you would give us a quotation per kilogram CIF London. It would also be a

9、ppreciated if you could forward samples and your price list to us. We used to purchase these products from other sources. We may now prefer to buy from your company because we understand that you are able to supply larger quantities at more attractive prices. In addition, we have confidence in the q

10、uality of your products. We look forward to hearing from you by return. Yours faithfully, Peter Brown,Offer,Two kinds of offer: a firm offer or offer with engagement a non-firm offer or offer without engagement.,A firm offer must satisfy the following requisite conditions: It must be sent to one or

11、more specific persons; The contents of the offer must be definite, that is, the conditions given must be complete, clear and final. A firm offer should include at least three specific conditions: the name, the quantity, the price of the commodity; It must indicate that once it has been unconditional

12、ly accepted by the offered within its validity, the offer is binding on both parties; It takes effect only after the offer reaches the offeree. It is always necessary to state the specific time zone when specifying the time of arrival.,Sample firm offer,Dear Sirs, In response to your enquiry of 20 M

13、ay, we wish to inform you that we have airmailed you, under separate cover, one catalogue and two sample books for our Printed Shirting. We hope they will reach you in due course and will help you in making your selection. In order to start a concrete transaction between us, we take pleasure in maki

14、ng you a special offer. This offer is firm subject to the receipt of your reply at the end of this month. 1. Art.No. 81000 Printed Shirting 2. Design No. 72435-2A 3. Specifications: 30 x36x72x60 35/6”x42 yds 4. Quantity: 18,000 yds 5. Packing: In bales or in wooden cases, at sellers option 6. Price:

15、 USD per yard CIF Hamburg 7. Shipment: To be made in two equal monthly installments, beginning from July 8. Payment: By confirmed, irrevocable L/C payable by draft at sight to be opened 30 days before the time of shipment. We trust the above will be acceptable to you and await with keen interest you

16、r trial order. Yours faithfully,Counter-offer,A proposal made by an offeree who does not fully accept the offer made by the offeror and makes modification or alteration to the offer. According CISG, a reply to an offer which purports to be an acceptance but contains additions, limitations or other m

17、odifications is a rejection of the offer and constitutes a counter-offer.,Sample counter-offer,Dear Sirs, Thank you for your letter about the offer for the bicycles. Although we appreciate the quality of your bicycles, we regret to say that their price is too high to be acceptable. Referring to the

18、Sales Confirmation No.89SP-754, you will find that we ordered 1 000 bicycles with the same brand as per the terms and conditions stipulated in that Sales Confirmation, but the price was 10%lower than your present price. Since we placed the last order, price for raw materials has decreased considerab

19、ly Retailing price for your bicycles here has also been reduced by 5%.Accepting your present price will mean great loss to us, let alone profit. We would like to place repeat orders with you if you could reduce your price at least by 2%.Otherwise, we have to shift to the other suppliers for our simi

20、lar request. We hope you take our suggestion into serious consideration and give us your reply as soon as possible. Yours truly,Acceptance,A legally valid acceptance must meet the following requirements: The acceptance must be made by the offeree. The acceptance must be shown either by words or acti

21、ons or in written form. The acceptance must reach the offeror within the time of validity of the offer. The acceptance must be unconditional.,2.3 Conclusion of the Contract,Contract?,A contract is an agreement that creates an obligation, that is binding, legally enforceable agreement between two or

22、more competent parties.,A contract of sale need not be concluded in or evidenced by writing and is not subject to any other requirement as to form. It may be proved by any means, including witnesses.,CISG,Why is it important to sign a written contract or confirmation ?,evidence that the two parties

23、have come to an agreement. a necessary condition for the formation of a contract. the basis upon which the parties concerned perform the contract.,2.4 Form and Contents of the Contract,a sales contract a sales confirmation,Contract,equally binding on the parties concerned.,1.Review and Discussion Qu

24、estions,1) Before business negotiations what preparations do you think the seller should make? 2) How many stages does a business negotiation usually undergo? Which are indispensable stages for the formation of a sales contract? Why? 3) What do the seller and buyer negotiate in international trade n

25、egotiation? 4) Why should there be general terms and conditions? 5) What is a firm offer and what is non-firm offer? 6) Can you tell briefly the requisite conditions that a firm offer must satisfy? 7) What does an acceptance mean? 8) Why is a written contract so important?,2. Complete the following

26、sentences with appropriate terms or words.,_ is the process in which the seller and the buyer discuss about _ in order to reach an agreement about the sales of goods. 2) International business negotiation, generally, needs going through five stages or links: _, _, _, _, and_. 3) _ is a proposal of t

27、erms and conditions presented in a potential contract by one party, called the _ to another party, called the _. 4) An offer can be made either by _ or by _. The former is customarily called “_”. 5) Offers with phrases such as “subject to our final confirmation”, “subject to prior sale”, or subject

28、to the goods being unsold can be taken _. 6) A firm offer should be _, _ and _ in its wording. 7) A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a _ of the offer and constitutes a _. 8) A reply to an offer which purports to be an

29、acceptance but contains additional or different terms which do not materially alter the terms of the offer constitutes _, unless _, without undue delay, objects orally to the discrepancy or dispatches a notice to that effect. 9) In international trade, written contracts can take two forms: _ and _.

30、_ is appropriate to transactions of large amount and huge quantity. 10) According to different regulations and laws, the conclusion of a contract depends on the procedure of making _ by one party and making _ by the other, and signing a contract in writing is not _ for the formation of a contract.,3

31、. Decide whether the following statements are true or false.,1) An offer without engagement is made when a seller promises to sell goods at a stated price within a stated period of time. ( ) 2) According to the UN Convention on Contracts for the International Sale of Goods, an offer should be regard

32、ed as a definite offer unless it expressly indicates all the details relating to the transaction, including the validity for acceptance and the phrases to indicate the finality. ( ) 3) In international trade, the effective formation of a sales contract must go through five links, namely, enquiry, of

33、fer, counter-offer, acceptance and conclusion of a sales contract. ( ) 4) According to the UN Convention on Contracts for the International Sale of Goods, a sale contract need not be concluded in or evidenced by writing and is not subject to any other requirement as to form. It may be proved by any

34、means, including witnesses. ( ) 5) It is a widely accepted rule in international trade that silence and inactivity on the part of offeree constitute acceptance. ( ) 6) When accepting an offer, there should be no conditions of acceptance or any material modification, addition or restriction in the ac

35、ceptance. Otherwise such an offer would be regarded as a rejection of the offer and constitutes a counter-offer. ( ) 7) According to international trade convention, under no circumstance can an offer be revoked once it is made by the offerer. ( ) 8) An offer containing such phrases as “subject to ou

36、r final confirmation”, “subject to prior sale” can only be taken as an offer without engagement and can be revoked even after it has been accepted by the offeree. ( ) 9) When a counter-offer has been rejected by the offeror, the offeree can still accept the original offer before the time of validity

37、 of the original offer expires. ( ) 10) Legally, there is no difference between the sales contract ( or the purchase contract) and the sales confirmation ( or the purchase confirmation). Both are equally binding on the parties. ( ),Case Study,A Chinese international trade company made an offer for a

38、n agricultural product to an American company. In addition to all the essential terms and conditions, the packing condition “Packing in sound bags” was also indicated in the offer. Within the time of validity of the offer, the American company gave a reply: “Refer to your fax first accepted, packing

39、 in new bags.” After receipt of the reply, the Chinese company started to prepare the goods. A few days later, when the price of the agricultural product plummeted in the international market, the American company claimed in its fax: “The contract is invalid because you have not confirmed our alteration to the offer.” B