CONTRACT NEGOTIATIONS

Contract Negotiations

Contract Negotiations

What is the goal of Cooligan?

Answer:

The goal of negotiation is mutual success of both parties in meeting their needs. It is contrasted with competition, in which one side wins, the other loses.

The Goal of Cooligan is clear in its intention to sell the shares in the EuroVitess to Keuken (and, preferably, to no other buyer) as soon as possible. It may also decide to generate a capital sum by selling its wholly-owned single-hulled VLCC to the highest bidder within the next twelve months.

What negotiating style or styles might you adopt during the meeting with the representative of Keuken (your counterparty), and why?

Answer:

Generally speaking from a contract law aspect pros and cons of both sides should be considered and the result of the negotiation should benefit both the parties.

Although four generic negotiating styles can be identified, rarely does a person employ solely one style. People have a preference for a particular style and can exhibit elements of any of the others.

Each negotiating style has its pros and cons, and some aspects of each are at times needed in different situations.

The Bully Style

An easily identifiable style is that of the bully. He is powerful, commands attention and has a high energy level. His modus operandi is to push for action, is usually loud, and is confrontational. He is totally insensitive to the feelings and needs of others, wanting to attain his own outcomes at all cost.

The advantages of this style are that he commands attention for a key point, and that negotiation can be brought to a rapid close.

Unfortunately, this style of negotiator will miss subtle points in the negotiation which could adversely affect the outcome, and has an: it is my way or the highway attitude.

Nonverbal characteristics of this type are an exaggerated posture of leaning forward, excessive use of pointing, and very direct eye contact.

This style is very limited in its usefulness, and certainly does not encourage a win/win outcome.

The Manipulator

Although not lacking in empathy as much as the Bully, the Manipulator still has a disregard for the feelings of others. He has a low level of energy, largely keeping a low outer profile, speaking in a careless-type of voice, almost condescending.

His modus operandi is to manipulate the other party to expose their weaknesses and get them to concede to his desired outcomes. He plays a cat and mouse game and is sly.

The Manipulator quickly draws attention to real threats that could affect an agreement, and can surreptitiously provoke debate.

On a negative side, he may distort information or bend the truth while exploiting the weaknesses of the other party.

Nonverbal characteristics include, slouching or leaning back with hands behind his head, and using fleeting eye movements as he surveys the group, both his team and the opponents.

The Confident Style

This is your people-person. He gives equal attention to the relationship of those present as he does to the issue under investigation. He exudes high energy and is always looking for better ways to have all parties work ...