Chapter 6 Closing the Negotiation•After the preparation, bidding and bargaining comes the closing period of negotiating. To reach an agreement the parties have to experience the two phases of making the deal and formally signing the contract. Through the bargaining process, both parties are gradually agreeing on some points and they are trying to make the deal from their own perspective. Once the agreement is settled, the contracts have to be written out and the economic contract should be signed in a formal way.This chapter discusses some points of closing the negotiation, introduces some tactics towards agreement, gives some tips on contract signing and negotiating summary.•In this chapter you’ll learn:● who makes the decision to close● when it is time to close● tactics towards agreement● tips on contract signing● summary of the negotiating6.1 Closing the deal•6.1.1 Who makes the decision?•The difference between a successful and an unsuccessful negotiator is the ability to close a deal when it has reached its maximum level of distributing “enough” among all participants. The deal is best closed when the agenda has been exhausted.•Sometimes the appropriate response to an offer laid on the negotiating table is “no”. Declining a deal, and doing so in the proper manner, is sometimes the Silver Medal of international business, not ideal, but respectable. Declining the deal must be done with the greatest diplomacy because this potential for future dealings is very important.6.2 Tactics towards agreement •6.2.1 Recessing• By recessing we mean taking a short break during which each party moves out of the negotiating forum to reconsider the progress of the negotiation, and to reconsider its own position; or breaking off until a later session. Recessing is such an important device that the method of using it deserves to be examined. When do we use it? How do we arrange it? How do we re-start?What is the recommendedprocedure to get a recess?•State the need for a recess. •Summarize and look forward.•Agree on the duration of the recess.•Avoid fresh issues. If others want to insert anything further, ask them to wait untilafter the recess.•After the recess, the meeting is re-opened with a miniature version of the steps that are taken to open a negotiation.•Recessing is potentially a very influential device. Disciplined use can make it a device that helps us towards profitable co-operation.•6.2.2 Setting deadlines•Defining the time by which a negotiation meeting must have finished (“I am booked on the 11:40 plane”); or the deadline for a series of negotiations (“I’m instructed to offer this to ABC Company if we cannot agree before 14 March”). These are seen as threats. They can cause resentment and counter-aggression.•However, if the deadline is agreed upon by the two parties (not simply imposed by one of them) then the atmosphere becomes more collaborative. Contrast the first quotation above and the following:•“It would be a great help to me if we were able to conclude this meeting in time to catch the 11:40 plane. Would it be all right with you if we aim to move at that speed?”•There are positive implications for setting a deadline for the negotiations. The setting of a deadline helps to concentrate the mind, the energy, the effort, and the speed of achievement.•There is however a negative influence if either party feels too early a deadline has been imposed.• 6.2.3 Full disclosure / The straightforward statement•Literally, this means complete readiness to give to the other party all one’s information. In practice, there will always be some elements people are unwilling to disclose and some other elements they are unable to disclose. We therefore have to interpret “full disclosure” as meaning the disclosure of 90 per cent of what we perceive.• 6.2.5 The study group•When the negotiations between teams get bogged down, it is then helpful to set up a sub-group. For example, when matters are reaching an impasse over delivery, then the production people from the suppliers can form a sub-group with one or two members of the purchasers to find means of resolving the delivery problem to their mutual advantage.•At the same time the main parties are freed to concentrate on other aspects of the negotiations or to give time to their other duties.•6.3.1 The draft of the contract •Generally speaking, the side that makes the draft will be in a positive position of the whole deal, so the focus should be more on who makes the draft. If one side cannot control making draft, they should at least be involved withthe other side for this process.•6.3.2 Examination of the qualification of the contract signer and its trading items, scope and process•A disqualified contract signer is surely a problem to the negotiating. It means the contract he signed is invalid. Therefore a thorough examination should be done to the contract signer.•The trading items, scope and its process should be within the law and the allowance of the government policy.•The signing of the contract should also answer for the law.•6.3.3 Contract articles must be rigid and thorough•In real practice there are many such cases of the damages caused by ambiguous contract articles. For example, a restaurant signed a contract with a vegetable company. The contract includes only a few words, specifically, “Chinese cabbages of 20,000 kilograms”. Finally at the time of delivery, it turned out that half of the cabbages rotted during transportation. In this case, the buyer has to suffer all the damages because there is not a single word mentioned concerning the quality of goods in the contract.6.4 Summary of the negotiating • 6.4.1 Value evaluation standard of business negotiatingRealization degree of the business negotiating objectives Negotiating efficiencyThe personal relationship after negotiating•To sum up, a successful negotiation must be one in which both sides’ needs are met. This satisfying result is obtained with high efficiency and at the same time thefriendly cooperative relationship of the two sides is built or further developed.•6.4.2 Content of business negotiating summary•1) Aspects that have direct relation with negotiating process•2) Aspects concerning the opponent•6.4.3 Steps of business negotiating summary•Business negotiating summary is generally composed of the following steps:1) Review the negotiating process and go over the minute.2) Analyze and evaluate the negotiating.3) Give suggestions of improvement.4) Write the summary report.III. Practical Sentences •Making conclusion•Let me just run over the main points.•It remains for me to say how much we appreciate your contribution.•Does that accurately reflect what we agreed during the meeting?•I suggest we meet later in the week. Would that suit you?•As far as payment is concerned, there are still some outstanding issues to resolve.•I’m afraid we didn’t get as far as we hoped.•That was a really productive meeting.•I think we covered the most important points.•In terms of our objectives, I think we did a good job.•So, we have agreed an initial one-year contract on the basis of full support and minimal project work.•9. Put the following sentences into English –我认为大部分的主要内容议题今天都已经讨论过了。
