Settlement Agreement Malaysia

It should be recalled that negotiations may continue even after the opening or notification of judicial or arbitral proceedings. In arbitration proceedings, it is possible to obtain a stay immediately after the adoption of the notification in order to accept the appointment of the arbitrator. When negotiations take place, written confirmation from the opponent of the de stay agreement should always be obtained. The aim of negotiations is, in principle, to probe the lower limit of the other party and then to influence an agreement as favourably as possible, taking into account this lower limit. This necessarily involves one party to defend the strengthening of its case, while rejecting the weaknesses that the other party will highlight. It is recommended that this process never be dishonest, as the disclosure of such a process can undermine the credibility and image of the party and that party`s negotiating team, and even have a negative impact on negotiations and subsequent settlement. Human nature is such that it is increasingly difficult to change public opinion, especially when others have relied on that opinion to make their own business decisions in the event of a dispute. During transaction negotiations, it is important that you are able to make an objective and realistic presentation of the strengths and weaknesses of your arguments with respect to the dispute and those of the other party. In some cases, a team member of one of the parties who has publicly expressed an opinion for many months can effectively disrupt the negotiation process. They will often have a personal interest in a new analysis of the dispute (and, ultimately, a negotiated solution reached between the parties), their continued reference and the insistence on the support of their previous opinion may lead them to advocate the need to adopt their previously defended position. For these reasons, it is often useful to limit the contributions of these people in personal negotiations so that they can explain why their opinion is as it is and then exclude them from further analysis and negotiations in order to avoid anchoring.

The person`s history in previous negotiations may reveal the true motivations, but this approach can narrow down the options for a negotiated solution in the event that the offer does not meet the other party`s lower limit. In the event that the “Take it or leave it” offer is not accepted, either the negotiations or the party making the offer is obliged to enter into negotiations to try to resolve the dispute, and the other party may look at all future offers with contempt thinking that a better result can be achieved. If the parties to the dispute reach an agreement through negotiations, they should record their terms in a formal, written and executed settlement agreement. The agreement is formal proof that the parties have entered into terms to settle the dispute. This will avoid any dispute over the content of “prejudiced” discussions and the terms of an agreement reached. .