What are the dangers of making a counteroffer
The majority of business deals are often associated with certain stages or sequence of actions. The final decision, especially when there is a need to sign up the contract and mainly when the underlying cost of the deal is high, seems like an event horizon or the point of no return. It might be observed that the tighter the negotiations before the contract, the tighter the critical thinking process and the more volatile the intrinsic decision making.
The decision to sell the house is almost always a tough decision for individuals because there are maybe only a few such deals throughout the whole life. The price of the house for the owner is usually based not only on market analogous but also on the other characteristics, and the majority of them are behavioral. So, the risk the seller of the house may counter offer is high even if the price distortion is very low. However, there are couple considerations should be taken into account before submitting the counteroffer.
First, there is a possibility that counteroffer may slow down the negotiations and even stop the further process because of the counterpart refusal. This in turn, is associated with opportunity cost for the seller such as time spent and lost control over financial resources, loss of the alternative buyers among many others. Sometimes, the buyer may ask for something in turn as the response to the counteroffer. So, in such case the seller would be called upon to meet an additional demand of the buyer. The one main aspect when thinking counteroffer regarding price is the time the house is being listed for sale. The longer the house is being listed, the higher the probability of losing a potential sale. The last but not the least main thing to be considered is the counter offer expiration date and the strategy to deal with rejection of the counteroffer.Learning Activity #2 Think of an example of an exculpatory clause.
An exculpatory clause is necessary for the contractor, who supplies the services, to transfer the risk of damages that might occur during the execution of the contract and avoid the potential liability. The probable exculpatory clause may be stated on the ticket of the parking lot in the downtown. In simple terms, that parking lot, while receiving the payment to provide the buyer with the place to park the car, is not responsible for either loss of contents or damage, which might be received by the car during its stay. In this case, the parking lot is relieved of the liability arising from the actions with potentially harmful consequences.
Every time, leaving the car at the parking lot there is a risk that a third party may cause damage, and the insurance has to be in place. The other example is the legal contract, which is signed in order to participate in a trust fund. According …