Business negotiation is a realistic negotiation, a negotiation that pursues interests, not an ideal negotiation. Any business negotiation must always be based on established policies and principles as a code of conduct. What are the principles of business negotiation? Below I have compiled the principles of business negotiation for your reading and reference.
Principles of business negotiation 1. Principle of law-abiding
Business negotiation is a legal act and it must abide by the relevant laws and policies of the country. Foreign-related negotiations should also abide by international laws and respect the relevant laws and regulations and practices of the other country.
Our country’s laws and policies are codes of conduct that reflect the will of all the people, are stipulated by the National People’s Congress and the state, and are enforced by the state. When conducting business negotiations, legality comes first. The idea that as long as you have strategic skills, you can successfully change your judgment and be invincible, it is obviously one-sided. Not only the interests of both parties, but also the overall interests of the country must be taken into consideration during negotiations. Otherwise, even if an agreement is reached, it will eventually cause legal disputes because it is illegal, and the final negotiation efforts will be in vain. For example:
In 1984, in order to absorb advanced international pharmaceutical production technology and enter the international market, Tianjin Pharmaceutical Industry Company decided to build a joint venture with Company S, the eighth largest pharmaceutical company in the United States. During the negotiation, Company S drafted a contract and submitted it to the Chinese party for review. The Chinese legal advisor found that 29 clauses in the contract violated my country’s Sino-Foreign Joint Venture Law and related laws. For example, Article 4 of the Joint Venture Law stipulates that the form of a joint venture is a limited liability company. A limited liability company cannot issue stocks, but the contract of S company requires the issuance and free transfer of stocks. If these stocks are transferred to the hands of some governments that our country does not recognize, it will become a cooperation between our country and other countries, and the consequences will be It seriously damages our country's diplomatic stance. We did not relax the control of the law because of the interests of Tianjin Pharmaceutical Industry Company in this joint venture. We conducted protracted negotiations with the representatives of Company S in a solemn, solemn and well-founded manner, and finally made Company S make a decision on this. After making amendments, a joint venture agreement totaling US$5 million was finally reached, ensuring the realization of national and corporate interests.
International business activities are both an economic act and a legal act. The negotiation, conclusion and performance of international economic contracts must comply with relevant legal norms in order to be recognized and protected by law. The legal norms mentioned here include not only the laws of relevant countries, but also relevant international treaties and conventions, as well as relevant international trade practices. Here are a few additional issues:
First, the legal effectiveness of the contract
Once a contract is concluded in accordance with the law, it has the same effect as the law. However, the laws of various countries generally do not specify what content an economic contract should contain. Many countries advocate that the parties should freely negotiate according to the principle of "freedom of contract". However, if there are any mandatory funds or restrictions that violate the law, the contract will be void.
On the other hand, as long as it does not violate the mandatory funds or restrictions of the law, if the content of the contract is different from the general provisions of the law, the contract and content shall prevail. If certain important contents are omitted from the contract, the relevant laws shall be followed when performing the contract.
Therefore, in actual business, when signing a business contract, you must be careful and strive to improve the content of the contract.
Second, differences in legal provisions and international treaties
In international business activities, parties involved in at least two different countries are involved, and the relevant legal provisions of each country are often different from each other. Differences, that is, the provisions for the same event are often different. Due to this difference, different legal rulings are often obtained for the same litigation case, which raises the issue of which country's law should be applied as the standard for resolving disputes . This issue is generally referred to as the application of law issue or the conflict of laws issue.
In order to solve the obstacles in the application of laws, the international community has launched the work of unifying international economic and trade laws, and many international treaties and conventions have been concluded between countries.
At present, various countries adopt different principles to solve the problem of legal application in international business activities. The main ones include personal law, the law of the place where the subject matter is located, the law of the place of contracting, the law of the place of performance and the law of the court. ?Our country, like many countries, adopts the practice of letting the parties choose which country's law applies in the contract, which is the principle of party autonomy. This has become one of the more common principles for resolving legal conflicts.
However, on certain specific issues, my country’s Foreign Economic Contract Law also has some supplementary restrictions. (P17)
Third, the effectiveness of international trade practices.
In international business activities, it is often necessary to quote the provisions of international trade practices.
All international trade practices have gradually formed some common practices or precedents in the long-term practice of international economic and trade business. Their characteristics are:
1. It is established through long-term repetition. Formed by practice, the conventions were only fair to certain regions or industries at the beginning. Later, with the continuous development of international economic and trade business, the influence of conventions also continued to expand, and some of them were even adopted worldwide.