An agreement in
principle may be part of the final agreement itself, it
may be a way-station toward reaching an agreement, it may
be used as a tactical approach to the negotiation, or it
may include combinations of all of the above.
Final agreements
frequently contain elements that are in effect agreements
in principle. Agreements that one party will receive a
fixed royalty rate or a fixed percentage of gross income,
or that prices will not exceed inflation, are all
agreements in principle. No one knows what final sales or
the rate of inflation will be, but we have agreed on a
principle as to how we will divide up these profits or
how price increases will be determined.
Frequently agreements in
principle are a way-station to a final agreement. We work
on establishing what would be an appropriate principle
for the agreement, agree to that first, and then work out
the details. Often developing an agreement in principle
is a good way to break out of an impasse or to bring
order to a complicated negotiation. Sometimes we get lost
in the mass of details, and going back to the underlying
goals of each party allows us to work toward an agreement
in principle.
Another approach is to
use agreement in principle in a tactical way. We will
develop a proposed agreement based on a principle that we
proclaim to be "fair and equitable." We might
argue that income should be divided equally. This
principle might be accepted per se and therefore form the
basis of an agreement. Alternatively, it might be opposed
with a counter-principle such as income should be divided
based on initial capital contribution, or on the amount
of effort that each party expends. In such a case, the
negotiation takes place on the level of whose "fair
and equitable" principle will form the basis of the
agreement.
copyright 1999 - Michael Schatzki
A Master Negotiator
Michael Schatzki is a master negotiator whose high energy,
content-packed Negotiation Dynamics® keynotes, breakout
sessions and seminars draw rave reviews.
Memorable and Entertaining
His Negotiation Dynamics® system offers participants a
powerful set of tools that will give them a critical edge in
organizing and structuring all of their negotiations. His stories,
anecdotes and sense of humor bring to life his powerful
Negotiation Dynamics® system.
Fully Customized
Mike does his homework. He customizes every program, from a 45 minute keynote to a
two day seminar. He learns about your business or industry and tailors the program to
precisely fit the needs of his listeners. The result is that audiences take away ideas,
concepts and approaches that they can use immediately to negotiate the best possible
agreements.
It Works
More than 75% of Mike's programs are for satisfied repeat customers who find him to be
a dynamic, entertaining speaker and trainer. The Negotiation Dynamics® system really
works!
Phone us at:
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Fax us at:
(908) 766-5125
E-mail us at:
MikeSchatzki@NegotiationDynamics.com
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Write us at:
Negotiation Dynamics
79 Page Hill Road
Far Hills, NJ 07931
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