This combined approach can be an effective way, Susskind advises. You can negotiate, for example.B a provision for your contract that promises a financial bonus to the other party if they avoid litigation during the term of the contract. Such a clause could give both parties the incentives they need to stay in touch throughout the implementation phase and involve a mediator for the first signs of difficulties. The parties are often under pressure to reach an agreement quickly and can therefore use a later agreement to “achieve the agreement”. Morris illustrates the risks associated with this approach and how saving time in development can lead to costly legal disputes that can be extremely troublesome for a company, especially if the party wants to rely on the concept in question. Among other things, the agreement provided that the parties should make reasonable efforts to negotiate an ASS in accordance with the principles set out in a timetable. The agreement also defined an indicative area for the duration of the GSA and the amount of gas it must supply. It is important that the calendar in question contained a statement that the conditions contained in it were indicative and that they had been presented as a means of encouraging debate. The applicant initiated proceedings and argued that he was entitled to “an additional period of time during which additional remuneration under the GSA was payable.” The applicant pointed out that the wording used in the GSO (i.e. “having the opportunity”) was binding. The defendant argued that it was not required to grant an extension to the applicant, since the provision is a non-applicable agreement and an agreement must be reached. The defendant also argued that, although it was not required to react reasonably to the extension proposed by the applicant, it had in any case acted reasonably in rejecting it.
If you include in your contract liquidated compensation clauses indicating the amount to be paid in the event of a breach of contract, advises Guhan Subramanian, a professor at Harvard Business School and Harvard Law School. Note that if you are the other party for actions in breach of contract, you are usually awarded damages to the money, instead of the specific goods or services you have lost. So if you negotiate in advance for a supplier to pay you $1000 for a missed delivery, this liquidated compensation clause will make future dispute resolution efforts or lawsuits easier. (c) If the renegotiation of the contract involves the adjustment of the price to be paid by one party for the performance of the other party, the outcome of the renegotiation process, unless the parties agree, must reflect the initial economic balance between the price and the value of the other party`s performance at the time of the contract or the conclusion of the price agreement resulting from the last renegotiation process. In the case of Baldwin – Anor/Icon Energy Ltd – Anor  QSC 12, the Queensland Supreme Court usefully considered the applicability of a bargaining agreement.