CONTRACT NEGOTIAION SITUATION

Hy Vong Hospital (BVH) (located at 183 Hai Ba Trung, Hai Ba Trung district, Hanoi) is a famous central
hospital and a cancer research and treatment center in Vietnam. On January 11, 2019, the hospital sent a
letter to Kaleidoscope Cancer Center Ltd. of Singapore (KCC) with the content of ordering 2 proton
particle cancer therapy machines. KCC (headquartered at 289 Victoria Road, Singapore) is one of the
most famous manufacturers of medical equipment in the world. In particular, KCC specializes in research
and manufacture of cancer therapy machines and at the time of negotiation, they are the only
manufacturer to provide cancer therapy machines with proton particles and win an award for their
dedication to development. Department of Health of Singapore with this proton particle therapy machine.
During the contract negotiation period, BVH asked KCC to provide an estimate of the cost and capacity
of the therapist (the two machines are identical). KCC requested BVH to provide data on the number of
hospital patients expected to be treated in a year and other related parameters. BVH immediately returned
this expected specification to KCC (see attached notice). KCC has developed a cost and capacity estimate
based on the parameters provided by BVH and included it in Appendix 2 of the sales contract. The
offered price of KCC is 30 million USD/unit.
On April 25, 2019, the two sides conducted direct contract negotiations at BVH headquarters.
Practice introduction:
- Divide the class into 4 groups, each with representatives from different units
- 2 groups representing KCC sellers; 2 groups represent buyers of BVH
- The tasks of each group:
o Determine the functional structure (important legal, commercial, financial, technical issues) of the
transaction. Think about the risks / problems EXPECTED will be encountered
o Contract / negotiation framework. Identify the problems:
 Important, uncompromising
 You can compromise
- Conduct contract negotiations between groups
 MINISTRY OF HEALTH SOCIALIST REPUBLIC OF VIETNAM
HOPE HOSPITAL Independence - Freedom - Happiness

N0: TB/SOL-01 Hà Nội, February 13, 2019

NOTIFICATION
To: Kaleidoscope Cancer Center Ltd.,
According to the document dated February 3, 2019 of your company asking us to send
necessary data for the cost and capacity estimate, we would like to send the following
data:

Content Detail Note

Average treatment volume (*) 600
Voltage used ~ 220 kV
Employee 02 Standing technician
…
We would like to suggest your company send us an estimate of its capacity and cost in
accordance with the agreed deadline.
Sincerely thank you!
(*) Number of patients treated in 1 year
On behalf of HOPE HOSPITAL
Recipients: Director
- Kaleidoscope Cancer Center Ltd .;
(signed and sealed)
- Save the clerical; 02.
Nguyen Van Luong