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The point...
Posted by nwas (more from nwas) on Thu, 20 Oct 2011 16:23:16
In Reply to: question for legal experts, TML
[Profile/Gallery]
, Thu, 20 Oct 2011 13:33:54
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The point of a non-binding agreement is for both parties to specify what they agree to... often done because they can't legally agree to do step "B" until step "A" is legally completed. Sure, they can change because it's not legally binding, but that's not the point - the point is that they have both agreed on the best course for the two parties and if they can pull it off, they will make it binding. Joint advantage.
Your difficulty with the issue is the common belief that every business deal is an adversarial relationship. Sometimes (in fact, much of the time) the two parties have a joint gain from the relationship - they just have to recognize and quantify it. FYI - if you take a modern course in business negotiating, most will teach you to find common objectives and then work to everyone's advantage. I'll agree that not all businesses will negotiate in this way, but it's the way to go for smart people.
To bring it back on topic, I used this technique to purchase my last (used) car. The dealer had a price (a good one actually, well below typical market value) on a car I wanted to buy. I put it to him straight by saying "Here's the deal: I want to buy the car, you want to sell it. Let's skip all the haggling: What's the bottom line that you'll sell it to me for". He was a smart enough guy to recognize the benefits to him and me... he explained what he was asking and why, and then came down several hundred dollars. My response was "done"... we signed the paperwork and we both went away happy.
You'd be surprised how many businesses (people) will make a deal that works for everyone after you point out what you both stand to gain and remove all the BS from the "negotiations".
posted by 71.174.89...
Posts in this Thread:
- Discouraging news, David in Michigan, Thu, 20 Oct 2011 13:12:00
- VM is busy with saving his job and current shareholder, dmz789qqq, Fri, 21 Oct 2011 06:23:13
- Re: Discouraging news, jeff '04, Thu, 20 Oct 2011 19:09:05
- What about parts?, EGD
, Thu, 20 Oct 2011 17:57:38 - Saab will be back, but with 100% Chinese ownership, MI-Roger
, Thu, 20 Oct 2011 15:10:00- precisely, Ken Fisher, Thu, 20 Oct 2011 18:49:27
- Google targeted advertizing..., dmz789qqq, Thu, 20 Oct 2011 14:03:56
- Maybe it's really the end....., TKC, Thu, 20 Oct 2011 13:35:25
- question for legal experts, TML
, Thu, 20 Oct 2011 13:33:54- The point..., nwas, Thu, 20 Oct 2011 16:23:16 <-- Viewing This Message
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