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Reverse negotiations

 

Lawyer in Spain: Reverse negotiations

Are you familiar with this phenomenon? It is known in jurisdictions where the concept of pre-contractual good faith is practically unknown. Such good faith implies that a party can not discontinue or stop negotiations whenever it feels like it. Such discontinuation would lead to liability for damage. This pre-contractual good faith is unknown in Spain and therefore allows the existance of the phenomenon that we call “reverse negotiations”.

Foreign businessmen or private individuals who are not prepared for doing business or contracting in an environment where pre-contractual good faith does not exist, will have a disadvantage during negotiations and can be easily misled unless they are aware of it.

How does it work? Your potential contracting party will approach you with a good offer. He or she will make a verbal offer or proposal but will not write down the offer in order to avoid creating evidence of the binding offer he or she makes.

You will then enter negotiations and spend time and money on the issue. The contracting party starts to stretch the negotiations out, continuously introducing new small issues which are disadvantageous for you. Every time you think that matters are solved and you are finally there with a definitive agreement, your negotiating party wants to renegotiate another issue, to which you tend to agree since you are already so far along.

You are able to avoid this simply by demanding with every negoted condition be put in writing. By doing this, you will find out soon enough if the Spanish contracts party is serious about doing business

 
     
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