Simulation 3: Negotiating with Seller's Counsel
Objectives
- Negotiate retention and indemnity
- Use conditional offers
- Close with agreed terms
Explanation
Seller's counsel rejects the US$20,000 retention and offers a general indemnity only. Your client's interest is protection against the labour claim; the seller's interest is receiving the full price quickly. Possible trade: a smaller retention (US$15,000) for a shorter period (6 months), plus a specific indemnity.
trade-off
Giving something to get something else.
“The trade-off is a shorter retention.”
to bridge the gap
To reduce the difference between positions.
“Let's try to bridge the gap.”
long-stop date
The final date by which conditions must be met.
“The long-stop date is 30 June.”
survival period
Time during which claims under warranties can be made.
“Representations survive for 18 months.”
final offer
The last proposal before walking away.
“This is our final offer.”
Flashcards
Match terms and definitions
trade-off
to bridge the gap
long-stop date
survival period
final offer
Complete the sentences
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