NEGOTIATION

PLAN

Ayush Kumar Jha

Lloyd Law College
2023-2028
 NEGOTIATION PLAN

Requesting side’s Negotiation Strategy:

Marine Auto Limited (MAL) in this mediation has the goal of resolving the dispute
arising out of termination of Charter Hire Agreement (CHA) which is acceptable to
both parties.

Our objectives include getting rightfully compensated from Energy X for the
inconvenience caused due to termination of CHA and a just solution in regard to
future of CHA either terminated or continued.

To achieve our goal, we will convince Energy X about the loss of time and
resources that MAL and Energy X had to incur and will have to incur due to
termination of CHA, which also has some legally problematic clauses. We will be
open to consider their interests. The willingness of both parties to join mediation and
avoid litigation cost and huge time cost makes the mediation more likely to be
successful.

Responding side’s Negotiation Strategy:

The goal of Energy X in this mediation, is to avoid legal dispute with MAL, to resolve
the dispute amicably and coming to a solution acceptable to both parties.

Our objectives include avoiding any legal dispute in regards to termination of CHA,
resolving the dispute in line with company’s policies, safeguarding our interests in
light of ongoing war situation and to continue with our business without any
hindrances.

To achieve our goal, we will convince MAL about the problems concerned for both
Energy X and MAL, of time and risks involved in regard to continuance of CHA,
which also has mutually accepted clauses, and we will not be hesitant to consider
the interests of MAL. Since, both parties are willing to participate in mediation even
after failed negotiation it means both are still open-minded to solve the issue and
avoid litigation which is good for a successful mediation.

Division of responsibilities between Client and Counsel:

Client: They will put forward the facts of the matter along with their viewpoints and
will have final decision-making authority in the matter for themselves.
Counsel: The legal counsel for the parties will help their client in dealing with issues
arising out of discussion on CHA’s future and its clauses, pitch the interests of their
clients and at times helping their client articulate and crystallize their view-point
whenever necessary. The counsel will also help their client in weighing the pros and
cons of proposals offered by other parties and break down technicalities as well.

Requesting side’s underlying interests:

1. To be provided with solution to ameliorate its situation as MAL feels

cheated and in grievance due to sudden termination of CHA.
2. To be treated at par with Energy X who used its dominant position to
terminate the CHA without any consideration/ taking viewpoint of MAL
first.

Requesting side’s BATNA:

Can file a lawsuit against unilateral termination (power) clause of CHA on ––

one-sided, unfair, oppressive and puts MAL on highly vulnerable side.

Responding Side’s interests:

1. To safeguard its business against possible losses, uncertainty and

price-shocks due to war situation.
2. To work in line with environment friendly initiatives, avoiding pollution
causing projects (which can attract government rules and penalties) and
tapping into promising and lucrative renewable energy sector.

Responding side’s BATNA:

Can file a lawsuit to execute the termination of CHA as its clauses were agreed
upon with free consent by MAL and has all the elements which makes it a valid
contract and its clauses to be enforced by law under Indian Contract Act, 1872
and has no element that makes it voidable as a contract cannot be declared
void only on account of being ‘unfair’.