As the title suggests, the article is concerned with negotiations between international bodies that seek to enter into an international alliance to serve their purposes. The article begins with a brief introduction of why and how international alliance negotiations take place and also points to a couple of the many legal questions that are involved in such negotiations. The primary objective of the article is to provide a basic idea about the procedural matters that are associated with international alliance negotiations and in doing so the article highlights the key aspects and characteristics of such alliances. At the outset, the article presents the starting point of all international alliance negotiations which is the establishment of issues around which the partnership will be formed, or in other words, the issues based on which the parties to the alliance shall begin and conduct their negotiations in order to give shape to the alliance. The second part of the article relates to the various aspects which comprise the establishment of issues. These include, firstly, the setting up of joint ventures, the proposed outline of the contract, performance clauses, restrictions on the partners and liability issues. Secondly comes the post-establishment issues which may include any changes that may take place to the contract, the dispute resolution, disposal and transfer of shares, termination of the contract. Lastly follows the actual negotiation process. Thus the three important facts that the authors use to support the principle idea are - Establishment Issues, Post-Establishment Issues and the Negotiation Process.
The information and ideas discussed in this article which have also been discussed in our textbook are firstly, the issue of joint ventures which is found in Chapter 20, page 616 of the textbook. Secondly, the issue of Strategic Alliances is also found in both and in the textbook inn Chapter 15 on page 454. thirdly, another aspect that finds place in both the article and the book is that of Dispute Resolution which can be found in Chapter 9, page 281 of the textbook.
The article also takes up and discusses some new concepts relating to these negotiations. The article talks about performance clauses. Performance clauses comprise the body of the agreement and deals with the goods and services in the negotiation. The second new concept discussed is liability and force majeure, a part related to liability. Share disposal is another new term which relates to the distribution and possession of shares of the partners that have entered into the alliance. The fourth new concept is that of termination which includes rules with regard to the termination of the alliance. Termination can take place both according to the agreement as well as a breach of the contract by a party to the alliance. Finally, the negotiation process is another new aspect discussed in the article. The negotiation process is concerned with the issues that are to be dealt with, the parties to the negotiation, the legal procedure involved, the choice of lawyers and the roles of the negotiating parties.
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