'Progress depends on successful negotiations'
- Busola Elegbede
In every community or society, people interact and exchange ideas goods and services; Nigeria has a infinimal surge of Commercial Transactions. All of which have effectly projected our economical growth progressively.
The positive impact of Commercial Transactions, vary depending on the issue or the underlying key goals of the transaction strategy which when properly outlined and executed, attract world class investors and investments. With a well researched investment, a good management team ready to execute business transactions at precise and appropraite time, it maximizes transaction values for the investors, showing that the Commercial Transaction is indeed a profitable Venture.
Commercial Transaction is the conduct or carrying out of trade, business or financial matter to a conclusion or a settlement.
Commercial Transcations involves the negotiation of terms and conditions of agreement which are to regulate the roles and obligations of each party carryingout and completing the transactions.
Every party in a Commercial Trabnsaction has something at stake and comes to the table prepared, and in the wise words of a successful negotiator:
'Use your leverage, it is best to go into a deal with something that the other guy wants or, better yet, needs'
-Donald Trump The Art of the Deal
It is wise to note that even a fail-safe plans, crumble, and the best form of offense is defence. Every Commercial Transaction or agreement embarked upon by either party should reduce or eliminate risk so as to ensure raise the percentage of success of the proposed project/ venture.
Negotiations succeed or fail depending on tactics/ attention given to all levels of the deal making. That is why in negotiating Commercial Transactions, the executives must be innovative, good listeners, posses high ethical values and have the ability to persuade.
The final form of the agreement should be handled by legal services before sending it to the other party; there would be clauses included to try to ease or reduce duress, misrepresentations allowing for future contigencies. Some business contracts are now including clauses for conciliations which is the adjustment and settlements of disputes in a friendly manner: a form of ADR(Alternative Dispute Resolution)
Negotiation Support Systems (NSS) are tailored in these situations to meet with the educational and cultural backgrounds of their users.
Different stratas of Commercial Transcations exists, ranging from two parties to multiple parties; from the same country or a mix from different countries. Support for international negotiation requires the infusion of decision-theoritic approaches with communications facilities, and different visualization modes.
In a Commercail Transaction, a good negotiator would explore the best alternatives BATNA (Best Alternative To Negotiated Agreements)
Here the executives identifies the scope and sequence of the project, the rights issues are tackled such that the parties, feel see and hear what they want to hear and warm up to the terms of Negotiating the Commercial Transactions
The is the goal of the executives to renegotiate and restructure a transaction going sour; he doubles as an entrepreneur and recognizes when parties are not happy and tries to fix the situation.
The primary goal of a negotiator is to recognise key drivers of successful business and ongoing financial performance and recognise ‘contractors’ committed to performance, because when both parties agree with the entire process and end result is achieved.
In Negotiating Commercial Transactions, the communication of aims and objectives, managing the flow of information, risk assessment and ability for executives to understand and deliver expected outcomes and determine the parties underlying interests fuel the success of the deal, project or business venture.
Mutual understanding of transaction agreements, issues tackled are done with the appropriate parties that can influence decision making at the right time, effectively. The executive is able to break down all barriers to give room for negotiating and open doors to possibilities
In Negotiating, sometimes it is necessary to change the process rather than the substance. To avoid these more people seek mediation and business negotiation before pursuing litigation in Court rooms.
In an example from a business transaction, a Nigerian business man supplies his bank clients with premium quality tailored Italian suits, due to an influx of high brow shops to the area, his business suffered and he tried repeatedly and failed to secure a deal with Competitors. Taking a different approach, he offered one of the new companies a partnership and home Delivery Service, through phones and the internet which didn't exist at the time and together, they positioned themselves as the number one premium tailored Italian suit company. Thereby reinventing his business ensuring he stayed in business.
For parties to enter into a Commercial Transaction that can be negotiated and is flexible, the terms
and agreement have to be clear and precise with no stones unturned: Fees to be paid, Specifications for goods or Services to be provided; Ownership of present intellectual property (and of any new intellectual property to be created);Confidentiality; Licensing of intellectual property; Marketing, restrictions on use of names and logos; Privacy of personal information; Compliance with Trade Practices Act and other relevant legislation; Period of the agreement; Default, force majeure and
Termination; Exclusivity; Restraint in dealings with similar bodies; Insurance; Each party to indemnify
the other side for breach; Restriction on assignments; all of which will be drawn up in the Agreement.
Whatever the commercial Transaction embarked upon, it is Crucial that negotiating Commercial Transaction saves time money and helps the economy move forward.
Despite variations of detail, all commercial transactions have one thing in common: they serve to transmit economic values such as materials, products, and services from those who want to exchange them for another value, usually money, to those who need them and are willing to pay a counter value. It is the purpose of the relevant legal rules to regulate this exchange of values, to spell out the rights and obligations of each party, and to offer remedies if one of the parties breaches its obligations or cannot perform them for some reason.
In conclusion, commercial transactions are the back bone ensuring that business transactions go smoothly in a precise and professional manner.
Copyright 2009 Busola Elegbede
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