Facts: Viking Investments negotiation was based on Pat Olafson (Viking) and Sandy Wood (Wood Crafters) trying to reach an agreement on the loan owed by Sandy ($200,000), the rent ($10,000) and the over-run ($250,000) for the job done. There were four members involved: Chelsea'an (Pat’s Lawyer), Kesha (Pat Olafson), Destiny (Sandy’s Lawyer) and myself (Sandy). Preparation for the negotiation took around forty minutes. The contract was breached by us (Wood Crafters) and there was no supporting document. Our options were bankruptcy or selling the house. The opening offer was made by Viking. Wood Crafters could see that Viking felt that they had the power/rights which led to the distributive approach. Initially, Viking was pushing for Wood Crafters to pay the over-run, the loan and the rent but Wood Crafters pushed against it. Wood Crafters argument was that the over-run project was approved by Viking secretary, therefore, Wood Crafters offer was to file a bankruptcy which believed to be the best option at the time. By filing a bankruptcy, Viking would not be …show more content…
I feel that Viking was using the loan and the rent as a leverage and knew exactly that I had limited options. Another huge mistake that I have done is the breach of contract. I should have asked for something in writing from the secretary prior to proceeding “If it is not documented – it never happened”. This is a lesson learned for me. Goals: In the future, I would try to have a strong and always try to enhance the BATNA. Also, based on my counterparties approach, I will try to respond to the hard tactics appropriately, Call them on it; Respond in Kind; ignore them and Offer to Change the Methods. I will ensure that I have done my research and I am well prepared prior to the negotiations. I would try to look for ways which could lead to a win-win situation for both parties
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McLaughlin v. Heikkila is a case that involves Wilbert Heikklia and David Mc Laughlin who entered into an agreement involving eight parcels to be sold to Mr. Mc Laughlin by Mr. Heikklia. According to Cheeseman (2013), the facts of the case indicate that Mr. Mc Laughlin submitted offers to Mr. Heikklia for the purchase of three parcels and afterwards, McLaughlin submitted earnest-money checks and three printed purchase agreements to Heikklia. According to the Minnesota Court of Appeals, McLaughlin himself never signed any of the agreements. However, his wife did sign two of the agreements and she initiated the third agreement on September 14, 2003. Then, two days later on September 16, 2003 Heikklia made changes to two of the agreements by increasing the cost of the parcels, and he changed the closing dates on all three agreements, including add a reservation of mineral rights to all three (Minnesota Court of Appeals, 2005).
Bargaining and negotiation are part of everyday lives and in the case of Smith and Fischer an initial bargain agreement was established. BATNA or Best alternative to a negotiated agreement is defined as the best method that can be used to convince...
“In sailing, you rarely if ever get to your destination by heading straight for it. In between you and your goal are strong winds and tides, reefs and shoals, not to speak of storms and squalls. To get where you want to go, you need to tack – to zigzag your way toward your destination. The same is true in the world of negotiation.” -William Ury
An important factor in contracts is that each side be aware of their responsibilities and rights under the agreement. As long as both parties know the terms of the contract it can be assumed that the contract will be impartial, or at least to the point that the contract is agreeable. This is essential for a contract to be enforceable. One defense available to attempt to void a contract is that the contract was unconscionable. Unconscionability in contracts is defined as giving one party, generally the one that drafts the contract, unreasonable and favorable conditions. In order for a contract to be deemed unconscionable it must be determined that no reasonable person would agree to the terms and conditions present in the contract. In the Williams v. Walker-Thomas Furniture Co. case, Williams purchases multiple items and agreed to pay them off all simultaneously, as if it was one purchase. Once Williams defaulted, the company tried to repossess all of the items as none of them were paid off in full. Williams’ case argued that the contract was unconscionable and that the store was well aware that Williams’ annual salary was $2,616. Regardless of Williams’ financial situation, I believe that this contract should be enforceable as the agreement is not unconscionable.
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
My father started, owned and operated a tire business there for 45 years. During the latter years, he depended strictly on out of town business, because the locals prevented county vehicles, school vehicles, and any other county business to be done there. Nevertheless, the business did very well. In 1993, my father had double knee replacement surgery. The business fell behind a few payments on a mortgage loan from a local bank. My father had done business with that bank since 1951. After very few months, the bank began foreclosure proceedings. My father immediately sold a large inventory of tires, raised $10,000. He offered the bank the $10,000 to pay the arrearage plus a few payments in advance to show good faith. Every possible attempt was made to satisfy the bank, but everything was turned down except the $50,000 required to pay the loan off in full.
In the negotiation for the Federated Science Fund I represented the Stockman Company. The meeting started with a caucus between Turbo and I which set the tone for the negotiation. In the five-minute caucus, we understood that we get the highest payoff by working together and decided to only form a deal with United if it benefited us. This was the main turning point in the negotiation as we returned to United with only high-ball offers: we opened with $220,000 each for Stockman and Turbo, and went only as low as $200,000 each, with $80,000 for United. United presented counter offers throughout, but all of them were below our $200,000 reservation point. Even though United continuously demanded a more inclusive deal, we saw no real benefit and made a deal by splitting $440,000 evenly.
My client, Ms. Emery, employs your client, Mr. Ivan, to install the plumbing in her new basement bathroom around two years ago. Your client didn’t perform a good job as he seems less professional than the other plumbers. They don’t sign any written contract, but both agree on a price ($5,265 including