Commercial practice - Negotiations Flashcards
What are the practical points to consider when preparing for negotiations? (1)
Method of communication and the venue.
What are the benefits of a face to face meeting? (1)
It can help to build a better relationship and may be useful if a difficult issue occurs during negotiations that needs to be resolved.
What are the benefits of a remote meeting? (1)
No travel costs.
Who usually hosts a face-to-face meeting? (1)
The party in the stronger negotiation position.
What can a non-hosting party show by attending a face-to-face meeting? (1)
A strong desire to reach a deal by showing willingness to enter the other side’s territory.
What is an agenda? (3)
A formal, agreed-upon list of items to be discussed in a meeting which sets out the order for which they should be discussed. One side will prepare the agenda but both sides should have the opportunity for input. Both sides should have a copy of the agenda in the meeting and items may not always be discussed in the order listed in the agenda.
How should a meeting begin? (1)
With points that are relatively easy to agree to build some rapport.
What do we mean by points may be ‘parked’? (1)
Points may be addressed again at a later point in the negotiations.
What is important to consider before negotiations regarding your client? (5)
Your client’s positions on key points, unless they are in an extremely strong position it is unlikely that they will get its preferred position on every point so we need to understand the reasons for the client’s position to negotiate an alternative which is still acceptable to the client. You should work out the client’s opening position, its bottom line and an acceptable realistic position. You should also identify any points that is in your client’s interest to use as bargaining chips.
What is a product warranty? (2)
An assurance given by the supplier to the buyer as to the condition of its product and there should also be a provision in the contract for the applicable consequences if the warranty is breached.
What is a warranty period? (1)
Period within which the warranty can be enforced.
When is a product specification used? (2)
Where a bespoke product is being supplied and it details the requirements of the product, usually appended to the supply contract.
What may a warranty that acts as an exclusion or limitation of liability clause in respect of terms that would otherwise be implied by S14(2) SGA be subject to? (1)
UCTA and the Reasonableness Test.
Will a warranty in a supply agreement likely to be a subject of negotiation? (1)
Yes.
What will a supplier want in regards to a warranty? (3)
- The warranty period to be as short as possible, there will be a provision in the contract for the consequences of breach of the warranty.
- Only ‘material’ non-conformity of the goods with their Specification to constitute breach of warranty.
- To retain the phrase ‘in all material respect’ so that the supplier will not be in breach of the warranty if the goods differ from the specification only in an irrelevant or insignificant way.
