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CS Professional · Arbitration, Mediation and Conciliation · Negotiation Skills and Communication

During talks on a supply contract, Priya's team states that the offer discussed is 'without prejudice' and non-binding until a written agreement is signed. What does this signify about the nature of negotiation?

It shows that negotiation is voluntary and non-binding in nature. Proposals made during talks do not bind the parties until a concluded agreement is reached, so each side keeps control of the outcome and no neutral decides anything.

  1. ANegotiation is a voluntary, non-binding process, and concessions made are not binding until a concluded agreement is reachedCorrect
  2. BThe parties must accept any proposal discussed
  3. CA neutral will decide the terms on their behalf
  4. DThe discussions automatically become an enforceable award

Explanation

Negotiation is voluntary and flexible. Statements made in the course of it are not binding unless and until agreed terms are concluded, so the parties keep control over the outcome. No neutral or award is involved.

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