Formalize the agreement/negotiation

In most business negotiations it is a good idea to get something down in writing. Even if a decision has not been made, a letter of intent to continue the negotiations is often used. This is a way for each party to guarantee that talks will continue. A letter of intent often outlines the major issues that will be discussed in future negoatiations. In some cases a confidentiality agreement is also necessary. This is a promise from both parties to keep information private between discussions. When an agreement has been decided, a formal contract may be required. On the other hand, depending on the seriousness of the decision, and the level of trust between the two parties, a simple handshake and verbal agreement may be all that is needed. For example, an employer may offer a promotion and an employee may trust that the new salary will be reflected on the next paycheque. However, even if nothing is put formally in writing, it is wise to send an e-mail or letter that verifies the terms and puts the agreement on record, especially when a specific number is decided on.

Self-Assessment Test

Are the following statements True or False?

1. During negotiations, one should treat an opponent with respect and consideration at all times.
True
False

2. In "competitive" negotiations, the two parties try to establish a common goal.
True
False

3. Prior to engaging in negotiations it is wise to consider one's own "bottom-line".
True
False

4. When in salary negotiations, employees should "low-ball" in their opening remarks.
True
False

5. Markus had no "bargaining power" compared to his boss, Louis.
True
False

6. One key to effective conflict-resolution is to deal with issues rather than personalities.
True
False

7. It may be possible to detect that a counterpart is lying by observing body language.
True
False

8. One should never admit to agreeing with an opponent during the course of negotiations.
True
False

9. Markus intimidated Louis into accepting his terms by threatening to quit.
True
False

10. Louis used last-minute tactics such as acting as though he was "Mr. Nice Guy".
True
False

Marketing

	brand	n. a particular make of product - to brand v. - branded adj.
	consumer	n. the person who buys and uses a product or service - to consume v.
	cost	v. [cost, costed, costed] to estimate the price of making a product - costing n.
	develop	v. to create a new product or improve an existing one - product development n.
	distribution	n. the delivering of products to end-users, inc. advertising, storing etc
	end-user	n. the person, customer etc who is the ultimate (and so real) user of a product
	image	n. the concept or perception of a firm or product held by the general public
	label	n. small piece of paper, metal etc on a product giving information about it
	launch	v. to introduce a new product, with publicity etc - product launch n.
	mail order	n. the selling of goods by post - mail-order catalogue n.
	market research	n. study of consumers' needs & preferences, often for a particular product
	packagingUK	n. the wrapping or container for a product
	point of sale	n. the place where a product is actually sold to the public - point-of-sale adj.
	product	n. something made to be sold; merchandise [includes services] - to produce v.
	public relations	n. creation and maintenance of a good public image - public relations officer n.
	registered	adj. registered or officially recorded as a trademark - ® abbr. - to register v.
	sponsor	n. firm supporting an organisation in return for advertising space - alsov.
	S.W.O.T.	abbr. Strength, Weaknesses, Opportunities, Threats
	total product	n. the whole product, inc. name, packaging, instructions, reliability, after-sales etc
	trademark	n. special symbol, design, word etc used to represent a product or firm - " abbr.

Banking

	balance	n. the difference between credits and debits in an account
	bank charges	n. money paid to a bank for the bank's services etc
	branch	n. local office or bureau of a bank
	checkbookUS	n. book containing detachable checks; chequebookUK
	checkUS	n. written order to a bank to pay the stated sum from one's account; chequeUK
	credit	n. money in a bank a/c; sum added to a bank a/c; money lent by a bank - alsov.
	credit card	n. (plastic) card from a bank authorising the purchasing of goods on credit
	current account	n. bank a/c from which money may be drawn at any time; checking accountUS
	debit	n. a sum deducted from a bank account, as for a cheque - alsov.
	deposit account	n. bank a/c on which interest is paid; savings accountUS
	fill inUK	v. to add written information to a document to make it complete; to fill outUS
	interest	n. money paid for the use of money lent - interest rate n.
	loan	n. money lent by a bank etc and that must be repaid with interest - alsov.
	overdraft	n. deficit in a bank account caused by withdrawing more money than is paid in
	pay in	v. [paid, paid] to deposit or put money in to a bank account
	payee	n. person to whom money is paid
	paying-in slip	n. small document recording money that you pay in to a bank account
	standing order	n. an instruction to a bank to make regular payments
	statement	n. a record of transactions in a bank account
	withdraw	v. [-drew, -drawn] to take money out of a bank account - withdrawaln.

Contracts

	agreement	n. an arrangement between two or more people, countries etc; contract
	appendix	n. additional or supplementary material at end of contract, book etc
	arbitration	n. settlement of a dispute by a person chosen by both parties - to arbitrate v.
	article	n. a particular statement or stipulation in a contract etc; clause
	clause	n. a particular statement or stipulation in a contract etc; article
	condition	n. anything necessary before the performance of something else
	force majeure	n. superior, power; unforeseeable event excusing one party from fulfilling contract
	fulfil	v: to satisfy a condition; to complete the required task; to fulfillUS
	herein	adv: in here; in this (document etc)
	hereinafter	adv: in the following part (of this document etc)
	hereto	adv: to this (document etc) [eg: attached hereto]
	heretofore	adv: up until now; until the present; before this
	in behalf of	in the interests of (person etc); for (person etc); on behalf ofUK
	null and void	invalid; without legal force; not binding
	on the one hand	on one side - on the other hand on the other side
	party	n. the person or persons forming one side of an agreement
	stipulate	v. to specify as an essential condition - stipulation n.
	terms	n. conditions or stipulations
	warrant	v. to give formal assurance; to guarantee
	whereas	conj: it being the case that; in view of the fact that [in introduction to contracts]

Insurance

	actuary	n. a person who calculates risks for insurance companies
	assessor	n. a person who calculates the value of something [eg: a building, car etc]
	claim	n. an application for payment under an insurance policy - to make a claim v.
	comprehensive	n. [of an insurance policy] all-inclusive; providing complete protection
	consequential loss	n. a loss that happens as a consequence of or as a result of another
	coverUK	n. the protection given by an insurance policy [eg: public liability cover]
	employer's liability	n. liability or responsibility of a firm for damage caused to one of its employees
	goods in transit	n. property, merchandise or any goods in the process of being transported
	insurance broker	n. agent who arranges insurance; middleman between insurer & policyholder
	liability	n. 1 the state of being liable 2 anything for which a person is liable
	liable	adj. legally obliged to pay for damage, injury etc; responsible - liability n.
	loss	n. death, injury, damage etc that is the basis for a claim - to lose v.
	loss adjuster	n. a person who assesses the amount of compensation arising from a claim
	policy	n. a contract of insurance [eg: a product liability policy]
	policyholder	n. the person to whom an insurance policy is issued
	premium	n. a payment, usually monthly, yearly etc, for an insurance policy
	product liability	n. liability or responsibility of a firm for damage caused by one of its products
	public liability	n. responsibility of a firm for damage caused to a member of the public
	reinsurance	n. the insuring of risk by one insurance company with another - to reinsure v.
	risk	n. 1 chance or possibility of injury, loss etc 2 person or thing causing risk

Company Structure

	Accounts Dept.	n. department responsible for administering a company's financial affairs
	A.G.M.UK	abbr. Annual General Meeting of a company's shareholders
	board of directors	n. group of people chosen to establish policy for and control a company
	chairmanUK	n. person who heads a Board of Directors; head of a company; chairperson
	director	n. a member of the board of directors
	executive officerUS	n. person managing the affairs of a corporation - chief executive officer n.
	headquarters	n. a company's principal or main office or centre of control
	manager	n. person responsible for day-to-day running of a dept.; executive officerUS
	managing directorUK	n. senior director after the chairman responsible for day-to-day direction
	Marketing Dept.	n. department that puts goods on market, inc. packaging, advertising etc
	organisation chart	n. a table or plan showing a company's structure graphically
	Personnel Dept.	n. department responsible for recruitment and welfare of staff or employees
	presidentUS	n. the highest executive officer of a company; head of a company
	Production Dept.	n. department responsible for physical creation of product
	Purchasing Dept.	n. department responsible for finding and buying everything for a company
	R & D Department	n. department responsible for Research and Development of (new) products
	reception	n. the place where visitors and clients report on arrival at a company
	Sales Department	n. department responsible for finding customers and making sales
	shareholder	n. person who holds or owns shares in or a part of a company or corporation
	vice presidentUS	n. any of several executive officers, each responsible for a separate division