Negotiations should be based on the principle of "good faith" (reflecting that it should be built on an ethical basis and on ethical behavior by both parties).
That may seem logical, but one day you may find yourself sitting at a negotiating table in good faith, and passing information to the other party, and then you are surprised that your counter-party quickly terminates the negotiations (sometimes even without warning), and contracts with some other, third party. Not only that, but the information you provided earlier on becomes available in the market for other parties and you find yourself and the company that you represent the biggest losers as a result of this way of ending the negotiations end behaving in this unethical way.
To avoid this situation, agreeing beforehand to negotiate in certain ways is considered as one of the most important means to secure protection for yourself and the company you represent, especially when negotiating a contract of great financial importan (...) Read more? Sign up for free