In this final stage, the parties go beyond the elaboration of contractual conditions and establish governance mechanisms that are formally integrated into the treaty. Setting a limited timetable can also be useful to prevent further differences of opinion. At this stage, care will be taken to ensure that all relevant facts of the situation are known in order to clarify one`s own position. After laying the foundation for this relationship in the first three stages, the parties develop the terms of the joint venture agreement. It is essential that all the terms of the formal relationship contract comply with the guiding principles. With the right attitude, the development of the joint venture contract becomes a common problem-solving exercise rather than adversarial competition. Franchisors must determine whether the services – such as pre-opening activities, site selection and training – that they make available to the franchisee at the beginning of the franchise agreement can be identified as “separate” from the intellectual property that the franchisee was granting. This decision should be made on the basis of professional judgment and industry best practices. (In many areas, including this one, private franchisors can look at public franchise submissions to see how those companies handled a decision.) The essence of the five stages of the negotiation process is the real deal and the catch in trying to negotiate an agreement, a real deal that suits all parties. A seller who could make a significant investment of capital and resources in the supply of a product will want to do everything in his power to ensure a long-term commitment from the buyer. In this intervention, we will look at the negotiation process, which consists of five steps. These steps are described below. Section 10 of the Indian Contract Act, 1872, imposes the conditions that must be met to make an agreement a legally binding contract.
This section again emphasizes that all agreements are contracts if they are concluded with the free consent of the parties entrusted with the performance of a contract and for which a legitimate consideration is paid. . . .