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Before listening to another part of the negotiation between Arco and CAS, recap what was being discussed in the first extract

In this next extract, Joe Blassini and Chris Pass of Arco and Elaine Chan of CAS ar* discussing compensation to CAS, and a royalty payment to Arco on future production of the engine. Identify:

a) why compensation is important to CAS

b) the final agreement reached.

Listen again. As you listen, write in the missing words.

a) CAS accepting the principle of a royalty:

We_____ _____ _____ a royalty, because once we're paying a royalty we've got an income to support it.

b) Arco insisting on a 10% royalty and agreeing to payment of two years' compensation:

Well, _____ _____ _____ _____ _____ a 10% royalty,_____ _____ that the two years' compensation.

c) CAS accepting this:

Okay, in principle _____ _____ _____ _____ 10% -_____ ______ compensation based on two years' projected sales.

d) Arco confirming what the parties have agreed:

Yes, okay. So, confirmation, to_____ _____ ______ _____ we are agreeing ...we agree to a two year sales forecast compensation.

Practice 3

You and a partner are representatives of Beck Instruments and Ojanpera Inc., a machine tool maker. Ojanpera is in discussion with Beck Instruments to buy a machine, the BI125. Use the flow chart below to negotiate some aspects of an agreement for the sale of the BI25.


Now listen to a recording of a model dialogue.

Summarizing and looking ahead


1 Listen to a recording of discussions towards the end of a negotiation between Jill Kearne from Gibson Trust Ltd.* a real estate developer, and Neil Finch, a government official responsible for the sale of a former railroad station.


a) Complete the labeling of the plan of the area involved in the negotiation.

b) What is not included in the sale?

c) What will happen on May 15 and in September?



Listen again.

a) How does Jill Kearne introduce what she wants to say? Complete the following:

Well,_____ _____ _____ _____ - go over the _____ _____ _____on. Is that okay?

... Well, _____ _____ _____ is ...


b) How would you describe the atmosphere in this negotiation?

The following letter is from Gibson Trust to the Department of Urban

Development summarizing the points agreed to in the negotiation between them and outlining the next steps. Fill in the blanks in the letter with appropriate words from the box.

enclosed developed specified examined excluded signed drawn up confirm included agreed




Practice 4


Imagine you are a participant in a subsequent meeting between Gibson Trust and government officials responsible for the sale of the former railroad station. You have made the following notes during your meeting. Use them to summarize an conclude your meeting, looking ahead to future steps.

1. Station Renovation and Use

* approve plane to renovate station as a museum-link to local City Museum

* Museum-operated by government / all year round

* Gift shop

* Study Center-supported by University and City Library

2. Other land

to be developed by Gibson Trust / agreed commercial 50% and residential 50% - specified in the contract

Next steps: Finish contracts

Next meeting: exchange contracts – June 25


Now listen to a recording of a model summary.

Role play


Conduct a negotiation, involving bargaining and making concessions and accepting and confirming. Work in pairs, A and B. With your partner, choose one of the following topics:

a) negotiating advertising space at soccer matches

b) negotiating purchase of a luxury apartment in Tokyo's Shinjuku district.

If you choose the first topic, look at File cards 18A (p. 93) and 18B (p. 96).

If you choose the second topic, look at File cards 19A (p. 94) and 19B (p. 97).

When you have finished one role play, either switch roles and repeat the exercise using the same topic, or change A and B and do the other topic. This way, both parties in the pair can practice buying and selling.

See who gets the best deal.



Think of a negotiation you were recently involved in. What kind of .negotiation was it? How do you think it went?

Did you keep to the Concession Rules included in the Skills Checklist below? If you had the negotiation again, would you do things differently?

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