'We might have a deal' – Language of negotiations part 2 | Business of English #13 | ABC Australia

Summary

This video script provides an in-depth look at the use of conditional language in business negotiations. It highlights key phrases like 'if,' 'could,' and 'would' to express terms, approval dependencies, and potential problems. The script emphasizes careful language choices such as 'subject to approval' and 'in principle' to clarify that agreements are contingent on other factors, often requiring higher-level approval. Through examples, it demonstrates how negotiators communicate conditions and explore possible solutions, making the language of negotiation crucial for successful outcomes.

Takeaways

• 😀 Using conditional language, like 'if', 'could', and 'would', is essential in business negotiations to express tentative agreements.
• 😀 'Subject to' and 'providing that' are common phrases used to indicate that an agreement is contingent on another factor, such as board approval.
• 😀 Negotiators often use softening phrases like 'We could consider' or 'That would be acceptable' to keep the conversation open without fully committing.
• 😀 The issue of currency fluctuations is a common concern in international deals, and businesses often hedge against potential risks.
• 😀 Hedging against currency fluctuations is an effective solution for managing unpredictable market changes during negotiations.
• 😀 Deferred payments (delaying payment) are often proposed to help manage cash flow and capital constraints, especially in large deals.
• 😀 It is important to acknowledge that final decisions in business negotiations may require further approval from higher authorities, such as a board.
• 😀 Phrases like 'in principle' signal tentative agreement, where the terms are agreed upon but still subject to final approval.
• 😀 Being clear about potential problems, such as exchange rate risks, helps both sides discuss solutions and create more robust agreements.
• 😀 Effective negotiation involves listening for key phrases that signal conditions, such as 'if', 'on condition that', or 'subject to'.

Q & A

What is the significance of the word 'consider' in the negotiation?

The word 'consider' signals that one party is open to the offer, but not yet fully committing. It implies that the offer is being reviewed with conditions, and the final agreement depends on meeting certain criteria.

How does Victor introduce the first condition in the negotiation?

Victor introduces the first condition by raising concerns about currency fluctuations. He asks if the price would vary depending on these fluctuations, highlighting the instability of the exchange rate.

What does Sue mean by 'subject to consideration by the board'?

Sue is stating that the offer will only be accepted if the board of directors approves it. 'Subject to' indicates that approval from another party is a condition for moving forward with the deal.

Why does Victor use the phrase 'could' when discussing currency fluctuations?

Victor uses 'could' to express a possibility, indicating that the currency fluctuations might have a negative impact on the deal. It's a way of discussing potential risks without assuming they will definitely happen.

What is the solution that Lin proposes for dealing with currency fluctuations?

Lin suggests hedging against currency fluctuations in both directions, which would protect both parties from potential losses caused by exchange rate changes.

What does Victor mean by 'the difficulty there is the capital outlay'?

Victor is referring to the financial challenge of stockpiling inventory to meet potential large orders. The 'capital outlay' refers to the upfront investment required to stockpile goods in advance of customer demand.

How does Sue propose solving the issue of deferred payments?

Sue proposes a deferred payment arrangement, allowing payment to be made at a later time. She assures the other side that they can provide security for this arrangement, ensuring trust.

What does it mean when Lin says 'I would need to get Board approval for it'?

Lin is indicating that while she personally finds the proposal acceptable, the final decision is not within her authority and must be approved by the board of directors.

Why do both parties express agreement 'in principle' rather than final approval?

Both parties agree 'in principle' because they have reached an understanding of the main terms of the deal, but final approval depends on factors like board decisions or additional negotiations, meaning the agreement is not yet finalized.

What role do conditional phrases like 'if', 'could', and 'would' play in this negotiation?

Conditional phrases like 'if', 'could', and 'would' allow both parties to express flexibility and contingency in their proposals. They communicate that certain terms depend on specific conditions being met, giving both sides room to negotiate and adjust their positions.