Law assignment preparing a planning document for Lindsey Oil Representative and the Lindsey Oil station owner, and identifying the bargaining zone
Task: Briefly create a planning document for each side, Lindsey Oil Representative and the Lindsey Oil station owner, and identify the bargaining zone. Can you discuss in the law assignment all the issues prevailing in the agreement between the buyer and the seller?
Question 1 of the law assignment
Briefly create a planning document for each side, Lindsey Oil Representative and the Lindsey Oil station owner, and identify the bargaining zone. You may like to consider including all the substantial issues, the reservation price, the target price, and the BATNA for each party. Also report the underlying reasons (i.e. interests) for the stated positions on the issues. (20 points)
The planning document for each side in the law assignmentis effectively provided as it helps in easily demarketing the overall approach towards long-term business operations. The planning document from the seller’s side is effectively discussed below in the law assignment. Identifying the basic requirement for undertaking efficient operations: firstly, it is very important for the seller to effectively identify the basic requirements of undertaking operations along with evaluating their overall cost in thelaw assignment.
• Maintenance and fuel requirement: 20 lakhs
• Requirement for safety Nets and living on return: 35 lakhs
• Expenses for food and other items for 2 years: 45 lakhs
• Getting the boat ready: 20 lakhs
• Boat cost: 60 lakhs
Desired outcome of the law assignment: the primary desired outcome is to effectively extract an amount of 1.8 CR from the process of selling. Therefore 1.8 CR can also be identified as the basic minimum requirement for the operation.
BATNA (offer in hand): an offer from an employee of Indian oil off 1.4 CR within which the organization is not interested.
Priority: the primary priority of the organization mentioned in the law assignmentis to effectively sell the service station along with a wide variety of ancillary services to the organization Lindsey oil company.
Reservation price: the reservation price identified by the listener is approximately 1.8 CR. Interest: the primary interest of the seller behind the operation is to attain a reasonable amount of financial security over periodical returns along with gaining access to sustenance that effectively includes food insurance health and many more benefits (Macuaneet al., 2021). Furthermore, the seller mentioned in thelaw assignmentalso expects to complete the sales process of the service station as soon as possible do an experienced and competitive agency.
Bargaining chips: to effectively bargain with the client, the following points can be effectively identified and presented.
• Firstly, it is evident from the law assignmentthat the location of the service station is very prominent as it is located on one of the most important routes of Mumbai that leads towards the port. It is also evident that there are a large number of shopping complexes industries and other congested public place in the area. Therefore, the condition can effectively lead to enhanced revenue generating capacity.
• Secondly, it is identified in the law assignmentthat there is very less competition within the area as there are no service stations within a radius area of 1 KM.
• The overall cost of a similar service station is valued at more than 2 CR which effectively includes the cost to build the station and the property. Whereas the organization is getting the station at a reservation price of approximately 1.8 CR.
• The service station is well maintained and equipped in nature.
• And lastly, the centre is already under an on going contract with the organization that helps in building trust and loyalty as per the law assignment.
The planning document from the buyer’s side is effectively discussed below in the law assignment.
Desired outcome: the organization effectively expects to pay an amount of only 1.6 CR for the sale. Position: the organization primarily has to position that is to pay 1.6 CR for the offer of a hand or to incur 2 CR for a new service station as a cost of up-gradation.
Interest: the primary interest of the organization considered in the law assignmentis that the site for the service station is very desirable and prominent. Furthermore, the overall operating schedule is very large and includes 24/7 operations. The organization is getting the service station at a very competitive and better price and the organization is also obligated towards building and buying the station. Lastly, it is also evident that the organization has a very long-term valuable relationship with the seller which will also help towards maintain good management in the long run (Igwe, 2021). Furthermore, the new service station considered in the law assignmentcan also be equipped with modern technologies to make it how many smarts which will generate additional cash inflows in the future.
Priority: the primary priority of the organization is to effectively undertake the purchase of the service station to effectively contribute toward the long-term 5-year organizational vision. Furthermore, it is evident from the law assignmentthat it is a very good opportunity for achieving organizational goals as the credibility of the seller is also high.
BATNA (offer in hand): the organization can effectively build a new service station at an overall cost of 2 CR. Reservation price: the overall reservation price set by the purchasing authority of the organization considered in thelaw assignmentis 1.6 CR and the overall cost of upgrading the service station.
Bargaining chip: the points that can be effectively utilized for bargaining the deal is effectively discussed below. • The management of the organization considered in the law assignmentcan effectively indicate that even though the service station is in a well-maintained condition the equipment within the same are very old (Franta, 2021). Therefore, the overall price can be effectively bargained based on the point that the company will have to reinvest in upgrading old equipment with new ones to undertake efficient operations.
• To further bargain the deal, the management of the organization considered in thelaw assignmentcan express its willingness towards closing the deal with an immediate effect and making an upfront payment. This will attract the seller based on the high amount of cash inflows on an immediate basis.
Question 2 of the law assignment
Discuss all the issues prevailing in the agreement between the buyer and the seller Further, how can you create an integrative deal between these two parties (15 points)
The evaluation of the case study considered in the law assignmenteffectively provides that there is no zone of a possible agreement between the parties to the contract and therefore to effectively enter into an agreement both the parties will have to go beyond their positions and consider the interest of one another by modifying and expanding the overall base of the agreement. To effectively arrive at a common point of agreement it is very important to identify the views, interests, and wants of both parties (Giacalone, 2021). Furthermore, it is also important to identify how Resources in the law assignmentcan be effectively expanded to meet the overall demand of both the parties to the agreement.
Therefore, the views interests, and wants of the seller into the agreement are effectively listed below.
• The case study mentioned in the law assignmenteffectively provides that the overall nature of the seller is desperate as he’s trying to immediately close the deal and realize the dream of his life.
• The seller considered in the law assignmentdoes not want the property to be sold at a price below the reserve price.
• The seller wants to effectively sell the property to a person who is capable of running the business efficiently. This will provide an appropriate sense of relief and happiness to the seller as he has invested a substantial period of more than 13 years in building the same.
• The seller considered in thelaw assignmentreviews Lindsay oil company to be one of the most competent parties to the agreement along with identifying the company as the right choice primarily because the seller already has an agreement with the organization for more than 12 years. Furthermore, the interest views and the want of the buyer in the agreement are also effectively listed in thelaw assignment.
• The company effectively feels that the agreement is completely aligned with the next 5-year vision of the organization which includes increasing and establishing its ownership over at least 100 service stations.
• The organization considered in thelaw assignmenteffectively believes that the seller is highly credible as the management already has an ongoing agreement with the seller for more than 12 years (Dye, 2022). Therefore, the management of the organization is not in any view of losing this highly scalable opportunity that can help the organization towards quick efficient, and economical achievement of organizational goals.
• The organization considered for thelaw assignmentis also considering the growth opportunities at the prime location which is the establishment of a mini-Mart which will provide an additional source of revenue. This will not only help the organization to grow but also generate consistent revenue in the long run.
• The organization is also well aware of the fact that order to effectively build a new service station within the area will cost more than 2 CR organizations getting the deal at a much cheaper price.
• The management of the organization effectively expects the deal to close at 1.6 CR as it will need to reinvest in modern technologies that are necessary for upgrading the station to function competently.
• Considering the prime location of the facility mentioned in the law assignmentand the potential for income growth in the long term the ban is looking forward to effectively closing the deal at a price between 1.8 to 2 CR. This would effectively serve as an appropriate strategy for both parties to establish a direct and favorable contract. Furthermore, to effectively arrive at a justified and integrated solution both the parties to the agreement must mutually agree on the basis and clauses of the agreement along with eliminating differences for efficient and collaborative operations in the long run (Domson-Lindsay, 2022). The primary issues and differences existing between Lindsay oil company and the owner of the station need to be effectively evaluated and listed within the process of negotiation to arrive at a justified conclusion in thelaw assignment. Therefore, the integrated solution for differences between the parties to arrive at the zone of possible agreement is effectively listed below.
• Firstly, the management of Lindsay oil company must buy the boat along with paying for the overall cost of the trip which includes gas. Furthermore, to effectively gain access to free marketing and advertisement campaigns within the process the name of Lindsay oil company must be painted on the boat.
• Secondly, the management of Lindsay oil companyas per the law assignmentmust effectively provide for the healthcare coverage of the couple on their way on the world trip.
• Both the parties to the agreement must also agree on the profit-sharing ratio to effectively manage the return generated by the station and the job offer in return.
• The station owner will be obliged to provide appropriate training to the future employees of the organization to ensure fair and optimal operations of this service station. Furthermore, it will also be the responsibility of the management of Lindsay oil company to pay training fees to the station owner in return for the training.
Therefore, through the above-identified integrative solution in thelaw assignment, the station owner and Oil Company will be able to effectively bridge the gap between the difference of opinion and enter into a favourable agreement for the achievement of common goals and objectives (Mangini, 2021). It is also worth mentioning in thelaw assignment that the management of Lindsay Oil Company must cater to all the needs of the station owner and vice versa to ensure fair communication and operations in the long run. Lastly to establish a long-term growing relationship between the organization both the parties to the contract must enter into a positive communication process regularly to exchange views for future collaborative business operations (Toumbourouet al., 2022). Furthermore, it will be highly favourable for the management of Lindsay oil companyconsidered in thislaw assignmenttoeffectively close the deal at a reservation price as it is a good opportunity for the organization to achieve its long-term business goals and objectives
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