Negotiation
Written on 12:19 PM by Shaun Hutchings
Negotiation concepts when it comes to contracts and agency law. This is different than Business Law. I took a business law course where I went into much more detail when it comes to business law. But these are some basic principles that we went over in our Global Sourcing Supply Chain Management Class. Negotiators can often fall into trouble if they do not have an awareness of governing legal laws. Here are couple 'rules of the road':
- The Mirror-Image Rule
- Every deal must have an offer, an acceptance, and consideration. Basically the mirror-image rule states that what is offered must match what the offeree is accepting. This means that the offeree must understand and be fully aware what the offeror is offering and visa versa.
- Offer Revocation
- Every contract need to have an offer and then followed by an acceptance. It is important to know and understand when they are making an offer and when to accept it. The offeror can revoke the offer at any time before the offeree accepts it, also if an offeree rejects it the offer is terminated.
- Negotiator Authority
- It is recommended to clarify your counterpart's authority to make a commitment before negotiating the substance of the contract. Many times people will make a contract or negotiation and they do not have the authority to do so. They have to check 'up-stairs' to see if it would be OK. This causes issues. Its always good to deal with someone that has the power to make the final decision to avoid the "get back to you'.
- Negotiator Intention
- Courts have adopted an objective theory of assent. Which examines the outward manifestations of conduct of both the offeror and offeree. So if someone signs a contract of any sort means that person has shown with physical actions that person agrees to that contract.
- The Consideration Requirement
- Something of value must be given in return to the offeror to make the contract valid. Meaning if you give a car to someone and then the person accepts it, it is not considered a contract because something of value was not given or offered in return.
If you enjoyed this post Subscribe to our feed
