Par t Seven: Unit One
II I .
How
to
Ha n d l e
Contracts and Negotiations
How to negotiate an agreement (week #7)
How to prepare a contract (week #8)
How to finalize a legal agreement
(week #9)
How
to
Agreement
Negotiate
An Introduction to Negotiating
Language Practice
Negotiation Tactics
An Introduction to Negotiating
an
1. What is a negotiation?
There are different ways explaining
negotiation. Basically, negotiation
is meeting between at least two
parties that aims to reach an
agreement. Negotiation includes
bargaining (where you are going to
get lower price); includes things
like talking to each other and
includes Win-win situation (you
want to get mutual agreement) so
each side feels like they are the
winner, each side feels that they
got what they wanted. Negotiation
is working together to get Win-win
situation and agreement between
two parties (two groups of
people).
2. What is the best type of
negotiation? Win-win negotiation:
consumers and suppliers feel
that they won the negotiation and
they got what they wanted.
3. What are essential conditions
and concessions?
Essential conditions are your
priorities, the important things you
want to keep, no matter what has
happened, to keep these things,
you are not willing to negotiate
those items or those things.
Concessions are those things that
you are willing to give up, maybe
you like to have them, but don’t
have to have them. Those things
you can concede.
4. What are some things that can
be negotiated? Twelve things
besides price that can be
negotiated:
Obviously
price,
deliver time, exclusivity, prompt
payment
discount,
quantity
discount, promotional discount,
ter ms of payment, minimum order,
uarantee/warranty, length of
contract, transport costs, penalty
for late deliver, procedure—all
these things can be negotiated
during the negotiation.
1. Negotiation,
as an idea, is unique,
and culturally specific.
–Elaine Winters, award winning
writer
A
negotiator
should
observe
everything.
You must be part
Sherlock Holmes
, part Sigmund
Freud.
福爾摩斯
佛洛依德
-Victor Kiam, CEO of Remington(勝者 K. Kiam
(1926 年 12 月 07 日- 2001 5 月 27 日) 是一位著名美國企業家和新英格蘭愛國
者的所有者從 1988-1991 。在上如此大學以後像耶魯、Sorbonne 和哈佛商業學
校, Kiam 適合一部分的槓桿兄弟和 Playtex 公司作為推銷員。他第一次做了他的
時運作為 Remington 產品的總統和 CEO, 他著名購買在他的妻子給他買他的第
一電動剃鬚刀之後)。
How
to
Agreement
Negotiate
an
An Introduction to Negotiating
Language Practice
Negotiation Tactics (strategy)
In negotiation, how you concede
(admit, allow) can be more important
than what you concede.
-Gary Karrass, author and lecturer
concede 承認；讓步(give up, admit, allow)
Concentrate on the issues that are
most important to you and minimize
or ignore the nonessentials.
-James C Nunan and Thomas J Hutton,
US businessmen
Don’t negotiate with yourself. Have
the patience to wait for the other
fellow to make a counter-offer after
you’ve made one.
-Richard Smith, US businessman
a counter-offer 還價
It is a well-known proposition that you
know who is going to win a
negotiation: it’s he who pauses the
longest.
-Robert Holmes,
executive
Australian
Proposition: suggestion
business
In a successful negotiation, everybody
wins.
-Gerard Nierenberg, US President of the
Negotiation Institute
Let us never negotiate out of fear, but
let us never fear to negotiate. (willing
to US—Soviet Union)
-John F. Kennedy, US President
Treaties are observed 看到,注意到，遵守,奉行 as
long as they are in harmony with
interests.
-Napoleon Bonaparte, French military leader
Negotiation 談判,協商[– a meeting between at
least two parties that aims to reach an
agreement 協定,協議，同意
Negotiate – the process involved when
two or more parties try to reach an
agreement
Negotiator – the person who negotiates
What does negotiation mean in …
1. Dutch (Holland) – “onderhandelen”
_under to treat , get something below
its price (get better price)
2. Urdu (Pakistan) – “batcheet”
_to talk/discuss/communicate things
over
3. Japanese (Japan) – “kosho”
_ mix and concern, mix relationships,
(put one company in a bowl, another
company in the bowl, and mix them up,
and mix relationships, mutual discussion,
mutual agreement, win-win situation, to
mix two groups together, so they can
come up with a good solution.)
Therefore, the concept of negotiation
probably includes all of the following:
1. “to bargain”
2. “to talk things over”
3. “to mix concerns”
4. “to reach an agreement”
A deal 處理– the final agreement 同意,一致 at the
end of a negotiation 談判,協商. It is a deal. 一言
為定；成交
 An
outcome 結果;結局;後果– the ‘result’ of
the negotiations
 A concession 讓步,遷就– something given
by one side in order to reach an
agreement
 Concede
A compromise 妥 協 , 和 解 互 讓 解 決 ( 分 歧 等 )– a
mid-position where both sides accept less
than they really want
A
proposal 建議,提議;計劃;提案– an offer 出(價);開
(價)[ made by one side
 A counter-proposal – an offer made
by the other side (after hearing the first
sides offer)

Types of Negotiations
Win-win negotiation (also called an
agreement-based negotiation)
 Independent advantage negotiation
 Win-lose negotiation



Win-win Negotiation
The two parties have a shared objective: to
work together in a way which is mutually
beneficial.
Proposals
and
counter-proposals are discussed until
agreement is reached. Both sides hope
for repeat business.
Independent
Negotiation
Advantage
The goal here is gain the best deal possible
for your side. Each party thinks only
about its own interests. In this type of
negotiation, a seller typically seeks to sell a
product but is less concerned about repeat
business.
Win-lose Negotiation
A third type is the negotiation to resolve
conflict, for example in a contractual
dispute. Here, it is possible that each
party regards the other as an opponent
and seeks to win the argument.
Is there a kind of negotiation that
happens between countries and does
not have a final agreement?
Par t Seven: Unit Two
Pur pose of Negotiation
Explorator y Negotiation
Exploratory negotiations occur when two parties are
“exploring” possible areas of mutual interest.
Example: Your company manufactures computers
and you have set up a meeting with a computer store
chain to discuss the possibility of selling your new
computer in their stores.
Explorator y 勘探的;探究的
Conciliator y Negotiation

Conciliatory negotiations occur when two
parties are trying to resolve differences.
Example:
You expected to receive 10,000 new
computer units by July 24th to sell in your stores, but
they have not arrived yet.
You call the
manufacturer to “resolve” this problem.
Conciliator y :KK: [
] or DJ: [
]
a. (形容詞 adjective)
DJ: [
安撫的;調和的=apologetic KK: [
] a. (形容詞
]
adjective)道歉的,認錯的;愧悔的
Contractual Negotiation
Contractual negotiations occur when two parties
have agreed in principle and now need to work out
final details for a “contract”
Example: Your company agrees to sell 10,000 units
of your new model computer to a computer chain
store. Both parties sit down to write out the terms
of the agreement.
What can be negotiated?-1
The next eight slides mention ‘areas’ that are
often negotiated.
There are four sections.
For
each section, you will be given three areas of
negotiation and then asked to match these with their
definitions on the next slide.
What can be negotiated?-2
1. Prompt payment discount
2. Quantity discount
3.Promotional discount
Promotional 增進的;獎勵的;晉升的;促銷的
a)
A reduction to help launch a new line:
Promotional discount
launch 開始;積極投入;猛力展開
b) A reduction available for pre-payment or
payment soon after delivery: Prompt payment
discount
c) A reduction available for the purchase of large
amounts: Quantity discount
4.
Delivery time: how soon you can deliver your
product
5.
Exclusivity
KK: [
]
DJ: [
n. (名詞 noun)
]
獨享;獨有
6.
Terms of payment: how you are going to pay;
types of payment
Terms (契約,談判等的)條件;條款
d)
Sole rights to a geographical area: Exclusivity
e)
How long the goods will take to arrive: Delivery
time
f)
Financial conditions for a sale: Terms of
payment
7.
Minimum order
8.
Guarantee/warranty
9.
Length of contract
g)
A promise of quality, or that faults will be repaired:
Guarantee/warranty
h)
How long the business agreement will last: Length of
contract
i)
The smallest number of items that can be supplied:
Minimum order
10. Transport costs
11. Penalty
for late delivery
12. Procedure
j)
The cost of delivery: Transport costs
k)
An extra discount (for the customer) because the goods
arrive after the agreed upon time: Penalty for late
delivery
l)
The correct way of doing something: Procedure
Preparing for a Negotiation-1
1.
What’s the agenda 待議諸事項;議程?
-not all negotiations have a formal agenda
2.
What are your strengths and weaknesses?
3.
What are your objectives?

Essential conditions list

Concessions list
Concessions 讓步;讓步行為
4.
Do you have all the information you need?
Evidence?
5.
Have you prepared the visual aids you might
need?
6.
Have you prepared an opening statement?
Small talkopening statement (each
group gives an initial proposal)
Qualities of Top Negotiators

Being prepared

Knowledge of subject

Flexibility

Listening skills

Ability to win respect

Ability to interpret body language

Persistence 堅持;固執


Sense of humor

Honesty (willing to be able to lie a little bit, try
to get the best price/deal as possible, you do not
need always to tell the truth.)

Stages of a Negotiation

Relationship Building: have a small talk (e.g.
travel, weather, sports), offer tea, something to
e at

Opening Statements

Initial Proposal

Counter-proposal

Concessions

Compromise

Agreement

Match the Words to their Definitions

Agenda

Compromise

Proposal

Priorities

Contract

Evidence

Negotiation

Agreement
A legal document that gives details of an
agreement: Contract

Meeting between at least two parties that aims to
reach an agreement: Negotiation

A plan for the meeting or negotiation: Agenda

Information used to help make your point in a
negotiation or meeting: Evidence

Agreement that is between the starting positions
of both sides in a negotiation: Compromise

Most important needs or demands: Priorities
Position (often the final one) that both sides accept:
Agreement

Offer: Proposal
Par t Seven: Unit Three

Sentence Completion

Use the vocabulary words on the next slide to
complete the paragraph on negotiations. The
paragraph can be found on the three slides
following the list of vocabulary words.
a) Discount
b) Outcome
c) Increase
d) Compromise
e) Concessions
Reduce
g) Bargaining
h) Deal
i) High
j) Short
k) Flexible
f)
l)
Terms
Paragraph on Negotiation -1
The process of making and reacting to
offers in a negotiation is often called (1)
bargaining. A price can be too (2) high
or too low. A delivery time can be too
long or too (3) short. Ter ms of payment
can be very strict or more (4) flexible.
To reach a (5) compromise, both sides
may have to make some (6) concessions .
For example, the supplier might have to (7)
reduce the price or increase the (8)
discount. The customer might have to (9)
increase his order.
If the (10) outcome is successful, both
sides will be able to agree to (11) terms
and say It’s a (12) deal !
Jargon and Idioms -1
On the next slide are 10 idiomatic sayings
or special ter ms (i.e., jargon) that are often
used when negotiating.
Match these
ter ms with their definitions on the
following slide.
strike a hard bargain ( be a tough
negotiator): You are a good
negotiator. You always push your
persistence, and try to get what you
want
2. fallback option (alternative kept in
reser ve): This is your plan no. 1, but
you have another plan/option after
your first plan. Initially, you want to
1.
get this deal, but if you cannot get the
first deal and are willing to get the
second deal.
fallback 撤退
3.
haggle over a price (dispute and
discuss ter ms): discuss a price and try
to get the price to where you want it
haggle 爭論;論價,討價還價
4. hammer out the details (elaborate the
fine 細微的 points): In principle, you make an
agreement, but you still need to discuss
the small things/the details.
hammer out 想出；設計出
5.
happy
medium
(satisfactory
compromise): You both reach the
middle part. Both you are happy and like
the deal
6. overlap of preferences (common
ground): both the supplier and customer
want the same things so they have the
same preferences
overlap 與...部分同時發生;與...部分相同；重疊部分
preferences 偏愛的事物= choices 選擇,抉擇
7. ploy (tactic)
工作;活動；計謀;計劃 strategies or tactics of
doing something
8. stalemate (deadlock)僵持狀態；陷於困境: you can not
come to an agreement; nobody can make a decision or nobody can
win. = deadlock 僵局,僵持,停頓
9. tradeable item (something for use in
exchange) : Maybe it is a promotion item.
You are able to trade the item
tradeable 可做交易的;有銷路的
10. win-win situation (where everyone is
satisfied): both sides are happy/ both
sides are feeling that they are successful
in the negotiation
a) alternative
kept in reser ve= fallback
option
alternative 選擇
reser ve 保留
b) be a tough neg otiator= strike a hard
bargain
c) common
ground=overlap
of
preference
d) deadlock=stalemate
e) dispute
and discuss ter ms= haggle
over a price
f) elaborate the fine points= hammer
out the details
elaborate 精心製作的;精巧的;詳盡的
g) satisfactor y
compromise=
happy
medium
h) something
for use in exchange
=tradeable item
i) tactic= ploy
j) where ever yone is satisfied= win-win
si t ua t i o n
Tentative Language -1
When negotiating, it is often better to
speak in a tentative, careful and thoughtful
manner (especially with customers from
England), rather than speaking in a strong,
clear and direct manner (this manner is
more acceptable with customers from the
USA). The following slides compare
direct and tentative language.
tentative 躊躇的,猶豫的；嘗試的;暫時性的
Direct vs. Tentative -1A
Direct: Our competitors are expensive.
Tentative: I’m afraid our competitors
aren’t very cheap.
 If you are introducing bad news, you
can make a direct statement more
tentative by adding a qualifier (i.e., I’m
afraid) and/or using not (+opposite).
qualifier【語】修飾語
Similar Examples
Direct: We can’t do that.
Tentative: To be honest, I’m not sure we
could do that.
Direct: That gives us very little time.
Tentative: Actually, that doesn’t give us
very much time.
Direct: There’s a problem with that.
Tentative: I think there’s a bit of a
problem with that.
 Another way to be more tentative is to
add qualifiers like ‘I think’ and ‘a little’
or ‘a bit of’.
Direct: It’ll be better to use Air Express.
Tentative: Wouldn’t it be better to use
Air Express?
 Using a negative question can make a
statement more tentative.
Similar Example
Direct:
The transport costs are
expensive.
Tentative: The transport costs are a bit
expensive, aren’t they?
Direct: There’s a misunderstanding.
Tentative: There seems to be a slight
misunderstanding.
 Using seems to be instead of is also
makes a statement more tentative.
Comparing
Tentative
Direct
with
On the next few slides you will see two
dialogs. The two dialogs are similar.
However, the first is very direct and the
second uses more tentative language.
Direct Dialog Example -1
C. Product X is very expensive.
S.It’s more expensive than product Y,
but it’s much better.
C. If we buy product X, what terms will
you give us?
S.What do you mean?
C. Can we have more credit 賒帳,賒欠[?
S.That will be difficult. You’re over
your limit.
C. We have a problem with our
cash-flow 現金流量.
S.Pay some of the money you owe us.
C. OK.
S.In that case we’ll be more flexible.
Tentative Dialog Example -1
C. To be honest, product X seems a bit
expensive.
S.Actually, it is a little more expensive
than product Y, but the quality is
better.
C. If we bought product X, what ter ms
would you give us?
S.What did you have in mind?
C. Could we have a little more credit?
S. That won’t be very easy. I’m afraid
you’re over your limit.
C. To be honest, we have a bit of a
problem with our cash-flow at the
moment.
S.You can pay some of the money you
owe us, can’t you?
C. Yes, I think we could probably do
that.
S.In that case I think we’d be more
flexible.
Negotiation Tactics
On the next few slides are several tactics
that you could use during a negotiation.
The tactic is mentioned at the top of the
slide and then an example sentence is
given.
 Emphasizing the ‘cost’ to you

Example: Well, I could do that, but it
would involve some changes to our
production schedule.
Showing how something you want gives
them a benefit

Example: If we split
two parts you wouldn’t
storage costs.
the shipment in
have such high
Saying that your concession is not normal

Example: Normally we don’t do that,
but I suppose in this situation it might be
possible. I don’t know what my boss
would say though!
Moving on quickly after winning a point
 (you just want a concession, so you
want to go to the next point. You are
happy about that part, so you want to
move on quickly. You do not want
them to think about it too much
because you got what you want it)
Example: Good, that’s a step forward.
Shall we move on to talk about the
transport arrangements?
Breaking down large figures to make them seem less

Example:
Let me see.
That would save us
about 500 dollars a month.
At least that’s
something.
Devaluate (devalue) the important concession
Okay, you give us the concession, but it is not so important.
(In your heart, you know it is great, but outside, you have a
poker face 毫無表情的面孔.) Do not say that “it is great,” but
you have to say that: “ Well, I suppose that it will help you a
little.”
Devaluate (devalue) 降低...的價值;減少...的重要性
Openness / Flexibility
You want to be open and flexible in the negotiation. You do
not want to come to the point too soon. You do not know
what the other side may offer (they may offer more than
what you expect.)
Openness / Flexibility -2
5.
If we increase our order to 500 units, will you
give us 90 dollars per unit?
4.
If we increase our order to 500 units, will you
give us a better price?
3.
If we increased our order to 500 units it would
mean much more risk for us. We don’t know
if this product will sell in our market.
We
would expect a better price.
2.
If you could give us a better price, and perhaps
be a little more flexible with your terms, then we
might find a way to increase our order.
1.
Supposing we increased our order?
What
would be your reaction (what would you do)?
(The goal: At the beginning, you do not give away
everything to the other person. Be patient, let other
person propose to you)
Asking for More Infor mation
1.
Sorry, can I interrupt?
I’m afraid I don’t
understand.
2.
Sorry, could you explain in a little more detail?
3.
Could you be a little more specific?
Summarizing-1
1.
Are you saying that …?
2.
So, in other words, …. Is that right?
3.
So, if I understand correctly, we can either …
or …. Is that right?
Summarizing is a useful technique. You can use it
to …

Check for understanding

Give yourself time to think

Keep a positive atmosphere by reviewing
progress

Prepare to close the negotiation
Be tentative, don’t try to be forceful.
Be less abrasive 傷人感情的,惱人的
Preparation for negotiation: to know what the agenda is, the strengths
and weaknesses as a person or as a company, to know what your
priorities are, what the things you want to keep, what the essential
conditions, what the concessions, what the things you want to give away.
In the negotiation, you have proposal, counter-proposal, compromise,
concession before you give agreement. Top nine qualities of good
negotiators. Knowing being prepared, knowing your company and the
other company, body language, being flexible, being persistent but
flexible. Honesty is important, but the last one. Sometimes it is okay to
be a little bit tricky. You want to be honest, but tricky is okay. Different
types of negotiation: win-win negotiation, win-lose negotiation,
independent advantage negotiation.