1 / 11

Introduction to International Business Law: Agreement Stages and Negotiation Essentials

This lecture provides a comprehensive overview of the stages involved in the formation of agreements in international business law. It revises concepts from the previous lecture and explores crucial topics such as the moment of agreement, the stages of preliminary negotiations, and the implications of breaking off negotiations. We will examine the distinctions between breach of contract and tort, along with the legal nuances of offers and acceptance, including irrevocability and withdrawal. Homework exercises will further reinforce these concepts, ensuring a deep understanding of negotiation principles in international law.

zora
Download Presentation

Introduction to International Business Law: Agreement Stages and Negotiation Essentials

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Course Introduction to International Business Law Lecture 2

  2. Topics • Revision lecture 1 • Questions • Subjects of today: • At what moment have you reached an agreement? • Stages of preliminary negotiations. • Breaking of negotiations (breach of contract and tort). • Homework

  3. Reaching an agreement • An agreement is concluded when one party accepts (offeree) the offer of another party (offerer) • Legal offer: • an offer is described • a price is determined • the number of objects is given • Invitation to enter into negotiations

  4. Reaching an agreement 2 • Reception theory: the offer is valid when it reaches the other party • Withdrawing an offer -> prevents that the offer becomes a valid offer • Revoking an offer -> valid offer but offerer changes his mind and cancels

  5. Reaching an agreement 3 • No revocation • The offer has already been accepted by the offeree • The offer is irrevocable

  6. Stages of preliminary negotiations • Rules of good faith • According to EU jurisprudence two stages in the negotiation phase: • Stage 1: parties start negotiating/exploring possibilities • Stage 2: an agreement is within reach

  7. Breaking of negotiations • Possibility to claim damages? • Using breach of contract? • Using tort?

  8. Claim damages? • Stage 1: Parties are free to break off negotiations, no claims • Stage 2: with the agreement within reach no liberty to break off the negotiations unless the breaking off party pays for the costs (& loss of profit)

  9. Using breach of contract? • Parties have already concluded a contract when they agree on two essential elements -> • Price • Object • The party that breaks off is liable for damages of the other party

  10. Using Tort? • In case parties didn’t agree on price and/or object -> no agreement reached. • Claim damages based on tort • Relevance of “good faith’ and in what way the interest of the other party was taken into consideration

  11. Homework • Exercises 1 and 2 Chapter 2

More Related