ContractNegotiation合同談判技巧課件

Intro/Objectives

ContractandNegotiationWhatisaContract?WhatisaContract?ApromiseorsetofpromiseswhichthelawwillenforceTheperformanceofwhichthelawrecognizesasadutyThebreachofwhichthelawwillremedyTheElementofaContractOfferMutualAssentIntentiontocreatelegalrelationsOffer/acceptanceGenuineConsentConsiderationCapacitytoContractProperFormSubjectmattermustbelegal

WhatisanOffer

Proposalmadebyoneparty(offeror)toanother(offeree)manifestingawillingnesstoenterintoabargainAnoffermust:haveclearintentbedefinitebecommunicated(oral,writtenorbyconduct)

MutualAssentIncommercialagreements,presumptionisthatcontractingpartiesintendtobelegallyboundBothpartiesmustwillinglyagreetothetermsofthecontractOnepartycannotbecoercedorputunderduressorthreatsContractcannotbeobtainedbyfraudormistakeAcceptanceNoparticularformrequiredsolongasintentionisclearOnlytherecipientoftheoffercanacceptAcceptanceeffectivewhenitissentMustaccepttheentireofferasmade-”acceptance”proposingdifferenttermsisacounterofferConsiderationExchangeofpromisesorthingsofvalue‘Gratuitous’promisesmaynotbeenforceablePromisemaybetodosomethingortorefrainfromdoingsomethingAproposalmustbesufficientlydefinitetobeenforceableCapacityApartymaylackthecapacitytoenterintoalegallyenforceablecontractMinorsMentalIncompetenceImpairment–drugsCorporations–veryfewinstanceswhereacorporationmylackcapacityFormofcontractRequirementforwriting–SomecontractsmustbeinwritingtobeenforceableSubjectmatter(erestinland)Surety(answeringforthedebtofothers)Periodforperformance(e.g.greaterthan1year)SubmissiontoarbitrationStatutoryrequirementsFormalityAffixingofsealWitnessingdeedsContractFormation–

ElementsOffer+Acceptance+Consideration=LegallyEnforceableContractPracticeTipsContractsdonothavetobeinwritingorfollowanyspecialformtobeenforceable–butatGEmustuseGELegalTemplateBecarefulwhatyouwriteandsayBecarefulofe-mailKnowwhatyouarebuyingKnowfactsaboutwhatyouarebuyingSites,quantity,price,parties,delivery,howpurchasedMakesurecontractyouwritereflectstheseBusinessAspectsofAWrittenContractIntroductionMaterials/design/scopeofworkPeriodofAgreementQuantitiesPricePriceChangesTermsofPaymentFreightRetentionofTitleClausePriceProtectionSpecialTaxesPackagingAdministrativeIssuesCertificateofAnalysis(COA)=addressforreceiptDeliveryTermsTaxExemptInformationContractAdministratorInvoiceAddressRighttoKnowRequirementsKeycommercialtermsLOCTerminationContinuousImprovementTermsandConditions-PerformanceClaimsWarrantyMaterialsPropertyRights-patentsLiabilityForceMajeureTermsandConditions–SpecifictoServiceAgreementsInsuranceSafety&HealthSubstanceAbuseIndependentContractorIndemnificationRiskAllocationWarrantiesIndemnitiesLimitationofLiabilityInsuranceAlternateDisputeResolution(‘ADR’)CannotchangeanyofthesewithoutS&LLegalagreementExpressWarrantyProductbrochurethatdescribestheproductanditsperformanceSampleoftheproducttoevaluateandtryVerbaldescriptionofproductWarrantyofMerchantabilityImpliedincontractsforsaleofgoods“Merchantable”meansPasseswithoutobjectioninthetradeOffairaveragequalitywithinthedescriptionFitfortheordinarypurposesforwhichtheproductsareusedEvenkind,qualityandquantitywithineachunitandamongallunitsAdequatelycontained,packaged,andlabeledasthecontractspecifiesConformstotherepresentationsmadeonthecontainerorlabelIncidentalDamagesReasonableexpensesincurredintheinspection,receipt,transportation,careandcustody(couldextendtodisposalifnotreturned)fornon-conforminggoods,alongwithexpenseorpurchasingfromathirdparty

FreightCostsDisposalCostsConsequentialDamagesIndirectdamagesuchaslostprofitsorcostofshuttingdowntheplantCOMMONFORBOTHPARTIESTOWAIVEObtainbylanguageinourwarranty,liability,negligence,andindemnificationprovisionsWhatIsAnIndemnity-/holdHarmlessAlwaysa“hotbutton”PromisetoreimburseapartyforafuturemonetarylossundercertainconditionsIfsuppliergivesanindemnity,wheneverbuyergetsaclaimcoveredbytheindemnity,thesupplierwilltakecareofit(representbuyerinsuit,hireandpayforlawyersandcourtcosts,andpayanddamages)GErequiressupplierstoindemnifyagainstfinesandcivilpenalties,personalinjury,andpropertydamagecausedbythesupplier’snegligenceGE’sindemnitywhenbuyingismutualWhatisLimitationofLiability?LimitationonthedamagesyouwouldotherwisepayforbreachofanagreementLawpresumesthatcommercialsupplierofproductsorservicesisprudentandhasdonewhat’sneededtoplacegoodsandservicesin“commerce”safelyStatuteandthecommonlawplaceliabilityonthesupplierthroughnegligence,breachofcontractandwarranty,strictliabilityforcausingdamage(propertyorpersonalinjuryordeath)tobuyerandthirdparties

UnlesssupplierlimitsitsliabilityLimitationsofLiabilityGEsalescontractscontainexplicitlimitationsofliabilityastoamount,typeofdamagesandtimetobringaclaimGEpurchasecontractsrarelyprovidesupplieralimitationofliabilityLimitingliabilitydependsentirelyuponthenegotiatingpowerandabilityofthepartiesResistgivingonewhenpurchasingIfmustgiveone,carveoutsimportant–negligence,3rdpartyclaims,confidentiality,privacyInsuranceEnsuremoneyavailableintheeventproductcausesharmGEsetslowlimits–generally$1MMHowever,mustaddressriskintransactionandsetoutcoveragetomeetneedDonotlimitliabilitytoamountofinsuranceGEisselfinsured–exceptforexcessliabilityThismeansGE(i.e.,SUB)pays–nocentralfunddowntownTypeofInsuranceRequiredWorkerscompensation–ownemployeehurtonjobEmployersliability–coverageifemployersuedbyownemployeeCommercialgeneralliability–includesawiderangeofdamagesfromsupplier’soperationsorproducts–bodilyinjuryandpropertydamage–mostimportantcoverageAutomobile–goeswithvehicleInsuranceIssuesAlwaysaskwhatthecontractorsinsurancelimitsareBuildthoselimitsintotheinsuranceclauseInsurancerequirementsapplytosubcontractorsAgreementgoverns–liabilityexistsevenifcan’tpayitwithinsurance–donotgivethisupConfidentialinformationAgreementsrequirethatsuppliersProtectourinformationassupplierprotectsitsownbutnolessthanreasonabledegreeofcareOnlynecessarypersonnelshouldhaveaccessNouseofGEnameorOvalUSexportlaws/regulationsgovernexportoftechnicaldata/productsDisclosingparty–mayneedlicensepriortoexportReceivingparty–cannotexporttoproscribedcountriesunlessauthorizedbyUSgovernmentConfidentialInformationConfidentialityagreementsarenotjointdevelopmentagreementsIfdevelopmentwilltakeplace,mustcontactbusinesspatentattorneySourcingdoesnotdraftjointdevelopmentagreementsIntellectualpropertycreatedforandpaidbyGEshouldbeownedbyGENeedappropriateassignmentNosuppliermarkingsonGEdocumentsNegotiationSkillsBargainingScenario:buyabrassdishinXiangYangMarket.Openpositionfrombuyeris$15,Whilethesellercounteroffer$75.CustomerHowmuchdoyouwantforthisbrassdish?Ohcomeon,it’sdented.I’llgiveyou$15Well,Icouldgoto$20,butIwouldneverpayanythingllike$75.Quotemearealisticprice$25$37.5.That’sthehighestIwillgo.……ShopKeeperThisisabeautifulantique,isn’titIguessIcouldletitgofor$75Really!Imightconsideraseriousoffer,but$15certainlyisn’tseriousYoudriveahardbargain,younglady.$60cash,rightnow.Itcostmeagreatdealmorethanthat.Makemeaseriousoffer.Haveyounoticedtheengravingonthatdish?NextyearpieceslikethatwillbeworthtwicewhatyoupaytodayWhatSetstheSkilledNegotiatorApart?Skillednegotiatorsfollowcertainrulesthatnovicesdonotunderstandorthattheydonotimplement.FundamentalElementsoftheNegotiationProcessNegotiationscommonlyfollowafoursteppath:PreparationInformationexchangeExplicitbargainingCommitment……Negotiationis,inshort,akindofuniversaldancewiththesestagesorsteps.Anditworksbestwhenbothpartiesareexperienceddancers.PlanningAflexiblenegotiationplan.SkillednegotiatorsdevelopstrategiesforeachphaseofthenegotiationProcess:opening,bargaining,andclosing.WhatdoIwant?WheredoIstart?WhendoImove?HowdoIclose?Pre-bargainingPhasePreparationandinformationexchangeInformationandAnalysis:Whataretheissues?Learnasmuchasyoucanabouttheissue.Whatinformationdoyouneedfromtheotherside?LeverageEvaluation:Evaluateyourleverageandtheotherparty’sleveragetotheoutset.Maybeanumberofthingsyoucandotoimproveyourleverageordiminishtheleverageoftheotherside.GoalsandExpectations:Goalsareonething;expectationsaresomethingelsePre-bargainingPhasePreparationandinformationexchangeTypeofNegotiation:Whattypeofnegotiationdoyouexpect?Willthisbehighlycompetitive,cooperative,orsomethingunusual?Willyoubenegotiatingfacetoface,byfax,throughamediator,orinsomeothermanner?Budget:Everynegotiationhasitscosts.Whatisgoingtobemostcosteffective?Plan:What’syournegotiationplan?ExplicitBargainingPhaseLogistics:when,where,andhowwillyounegotiate?OpeningOffers:Whatisthebestofferyoucanjustify?Shouldyoumakeit,orwaittoletanotherpartygofirst?SubsequentOffers:Howshouldyouadjustyournegotiatingplanwhenrespondingtounanticipatedmovesbytheotherside.ExplicitBargainingPhaseTactics:Whatsortoftacticswillyouemploy?Whatsortoftacticsistheothersideusingonyou?Concessions:Whatconcessionwillyoumake?Howwillyoumakethem?Resolution:Whatisthebestwaytoresolvetheproblem?Isthereanelegantsolution?Beonconstantlookoutforcompromiseandcreativesolutions.BargainingSkillGoodman,BadmanStartwithhighstandandexpecttoachievemiddlegrandUsehardnegotiationtypeUsebossasexcuse……Work-Out

DevelopaNegotiationPlanScenario:SourcingwasnotifiedbytheEngineeringTeamthatoneoftheconstructionsupplieralreadyspent$100,000ontherevisedscopeofworkwithouttheproperexecutionauthoritygranted.Nowourcompanyholdstheirpaymentduetotheirincompliance,butthesupplierthreattogotocourtforthe$100,000payment.YouneedtodevelopaNegotiationPlanontheupcomingnegotiationmeetingfor$100,000HardNegotiator“Takeitorleaveit.”“Thisproposalisnonnegotiable.”“Don’taskmegobacktomybossonthis.Thisisallwearegoingtodo.”“Thisisit.Ifyoudon’twanttoacceptitatthatprice,forgetit.”SoftNegotiator‘Itseemsalreadyreachthebottom-lineoftheotherparty’…-intendstotrustothersOK.IacceptDisclosetheselfbottom-line‘Ifwedon’tagreehere,wewilllosethisdeal’-insistonagreement‘Forlongterminterest,let’sagreethistime’-makeconcessionstocultivatetherelationshipBreaktheTie-GettingtoYESDon’tbargainoverpositions‘myposition’,‘yourposition’EverynegotiatorbyfacthastwokindsofinterestsInthesubstanceIntherelationshipHarmtotherelationshipandmaynotachieveanyagreementBecarefultostartnegotiationwithblamingotherBreaktheTie-GettingtoYESFocusonInterests,notpositionsHowdoyouidentifyinterests?Ask‘Why’and‘Whynot’toclarifytheotherparty’sinterestThemostpowerfulinterestsarebasichumanneedsSecurity,recognition,economicwell-being,…MakeyourinterestscomealivePuttheproblembeforeyouranswerFightinghardontheproblemincreasesthepressureforaneffectivesolutionSofttothehumanbeingontheothersidetoimprovetherelationshipandincreasethelikelihoodofreachingagreementBreaktheTie-GettingtoYESInventOptionsforMutualGainProblemofonlyseeingafixedpieThementalityof‘solvingtheirproblemistheirproblem’Solution:Separateinventin