Communication: Negotiations and Legal Aspects

Provide insights to the negotiation skills in leadership and management. Negotiation being the most demanding and integral component of organizational communication, is instrumental in making business happen. It is a bridge between diverse linguistic and cultural business environments. Also, the know-how of legal aspects of negotiation in business deals is vital.

1. Communication: Negotiation and Legal Aspects By Dr. Zain Mohammad Sulaiman Assistant Professor Department of Languages Integral University, Lucknow-226026 INDIA

2. Negotiation: Introduction Negotiation is defined as any form of direct or indirect communication whereby parties who have opposing interests discuss the form of any joint action which they might take to manage and ultimately resolve the dispute between them.

3. Why Negotiation? Negotiation is used to resolve an already-existing problem or to lay the groundwork for a future relationship between two or more parties . It is also applied within the context of other dispute resolution processes, such as mediation and litigation settlement conferences.

4. Process of Negotiation

5. Features of Negotiation Voluntary: No party is forced to participate in a negotiation. The parties are free to accept or reject the outcome of negotiations and can withdraw at any point during the process Bilateral/Multilateral:  Negotiations can involve two, three or dozens of parties. They can range from two individuals seeking to agree on the sale of a house to negotiations involving diplomats from dozens of States Non-adjudicative:  Negotiation involves only the parties. The outcome of a negotiation is reached by the parties together without recourse to a third-party neutral. Informal:  There are no prescribed rules in negotiation. The parties are free to adopt whatever rules they choose, if any.

6. Features of Negotiations Confidential:  The parties have the option of negotiating publicly or privately. In the government context, negotiations would be subject to the criteria governing disclosure Flexible:  The scope of a negotiation depends on the choice of the parties. The parties can determine not only the topics that will be the subject of the negotiations, but also whether they will adopt a positional-based bargaining approach or an interest-based approach

7. Negotiation Skills Communication: Effective communication skills allow to engage in civil discussion and work toward an agreeable solution . Emotional Intelligence: E nable one to pick up on what they’re implying rather than explicitly stating and advantageously manage and use one’s emotions. Planning: Without adequate planning, you can overlook important terms of your deal or alternative solutions . Value Creation: In negotiation, While shifting one’s goals from growing one’s slice to expanding the whole pie. This realizes greater value , and establish rapport and trust which benefits future discussions.

8. Developing Negotiation Strategy

9. Legal Aspects in Negotiation Large business houses that are used to negotiating contracts on day-to-day basis will always consider the legal aspects. They may have dedicated procurement departments handling negotiations and teams of contract lawyers poring over the fine details of any legal documentation. But, for SMEs, contract negotiations can sometimes seem daunting, particularly for businesses where the management team is less experienced.

10. Legal Issues while Negotiating Confidentiality: A confidentiality agreement (also known as a non- disclosure agreement) should be signed before giving away any business sensitive information. The agreement should stipulate that information disclosed during negotiations: Is confidential  Should only be used for a stated purpose  Should not be shown/ disclosed to anyone else Should be returned/destroyed if deal does not go ahead

11. Legal Issues in Negotiation… 2. Not Disclosing Business Sensitive Information: Must t ake legal advice before handing over any business sensitive information. A confidentiality agreement may give some protection, but it must be signed before anything is handed over. If the other party has access to the business’ customers or employees, consider asking them to sign a non-poaching (or non-solicitation) agreement. This stops one party from approaching the employees, customers or clients of the other party.

12. Legal Aspects in Negotiation 3. Zero Bribery: A person or business could be committing a serious offence by failing to prevent bribery and can potentially face unlimited fines. This creates grey areas, such as where the company supplying your goods and services uses contractors and subcontractors.

13. Legal Aspects in Negotiation 4. Do not Exaggerate or Mislead: Contract negotiations are often tense affairs where the pressure to seal the deal can create a temptation to overstate your business capabilities or performance. However, if a business exaggerates or misleads the other party during negotiations, the contract may be rendered invalid with the wronged party entitled to compensation.

14. Legal Aspects in Negotiations 5. Consulting Prior to Pre-Contractual Agreement: I t’s vital that you take legal advice before signing any pre-contractual agreement. Even if the agreement is not meant to be legally binding, it may create legal obligations that affect a business’ negotiating position .

15. Thank You