Extract 1

Lawyer: Yes, I understand what you are saying, but the facts are clear. The company was responsible for carrying all the safety checks. Those checks were not made.

Manager: That’s what you say …

Lawyer: There is evidence that safety practices were poor. You know that. I advise you to make a settlement, Mr. Cooper. If not, I think it could be worse for the company. You don’t want the press involved in this …

Extract 2.

First man: The price includes all the land and the buildings.

Second man: Yes. What about the payment terms? With better terms, you could accept a lower price?

First man: No, I think terms are not the problem. The issue is price, Mr. Ford. We have had several offers …

Extract 3.

Woman: Yes, what looks good here is the practical qualities of the building and the use of natural materials, stone, glass, wood. It’s very attractive.

Architect: I thought you’d like it. But we’d like to discuss some other possibilities, though. There are different options – we need to get things right – absolutely right.

Woman: Yes we need to talk about the time schedule, too …

Stages of Negotiation

Opening statement

Exercise 7 Most formal negotiations begin with an opening statement from each side. What do you think an opening statement should include?

A) Read a part of a meeting between a small Singaporean software company called LP Associates and a possible partner, Kee Ltd., in a joint venture. This is part of an opening statement from Stella Wang, the Production Manager at LP Associates. Check (۷) four of the eight statements below which best represent what she says.

Well, thank you for coming here today. As you know, we have a busy agenda. May I begin by outlining some basic thoughts that we have on this meeting? First of all, we see it very much as a first meeting, a preliminary negotiation to identify areas in which we can perhaps work together on certain products - prototype products - that we have developed. There are two, possibly three, ways in which we might go forward. I’d like to summarise these under three headings. First, development projects, second, license agreements. The third is the possibility of some kind of consultancy relationship. Is everyone happy if I say a few words about these to begin with? Right, well, first of all, joint development projects. This is...

LP Associates wants to reach a final agreement in this negotiation. □

These are preliminary talks. □

The two parties want to resolve a conflict. □

They want to agree on a name for the joint venture. □

LP Associates would like to consider joint product development. □

They would also consider license agreements. □

LP Associates wants to agree to a complete sale of their ideas. □

They want to consider working on a consultancy basis. □