SKMC92117 CompuCalc Mediation Plan

TEAM CODE: SKMC92117
S. K. MISRA MEMORIAL INTERNATIONAL

MEDIATION AND NEGOTIATION COMPETITION 2.0,
2021
NEGOTIATION PLAN
On behalf, of
Compu Calc Ltd.

(Responding Party)
In the matter, of
Edelweiss International Ltd.

v.
Compu Calc Ltd.
Mediation Strategy
The strategy would involve identifying and establishing areas where the team can
leverage its position to that favour Compu Calc ltd. (hereinafter, Compu Calc) during
the negotiation, most important points are flagged as follows:-
1. Achieving Annual Target: Edelweiss is well behind in completing the set
target of consoles. Compu Calc’s primary objective is to push for the target to
be completed by Edelweiss. This is likely because the non fulfillment will lead
to termination of contract between the companies which will damage the
financial prospects of Edelweiss the most.
2. Declassifying the Pandemic as Force Majeure: A crucial element to establish

the occurrence of force majeure is that the event or condition itself must have
been must have made performance of the contractual obligation an impossibility
and not merely more difficult or impracticable. The losses borne by Edelweiss
and temporary suspension of transport facilities had only made the performance
of the contract difficult and not impossible. This is unlikely to be accepted
completely since there was partial impossibility of performance for 4 months
but this will only be given in when Edelweiss promises other incentives.
3. Compu Calc is not liable to compensate any losses borne by Edelweiss

The losses borne by Edelweiss cannot be attributed to Compu Calc either
directly or consequently, therefore it should not be bound to compensate
Edelweiss for the same. This is likely because the contractual clauses clearly
state that neither of the companies are liable for the losses suffered by the other
party. Compu Calc will not be taking back the consoles so long as Edelweiss
does not provide an incentive to do so, as it had already been stipulated in the
agreement that the consoles can only be returned at the fault on the part of or at
the choice of Compu Calc.
4. Compu Calc is willing to bargain exclusive distribution rights

Compu Calc has IP rights for the consoles and has distribution chains in
Singadoor and Pindonesia but is willing to provide exclusive distribution rights
to Edelweiss given there is expansion into new territories.
Division of Roles
The Counsel will be dealing with the specifics of contractual agreements and the effect
of unnegotiated exclusivity clauses which were only reluctantly agreed to by
Edelweiss, alongside the exclusion of the pandemic as an event under the exception of
Force Majeure. Whereas the client will be dealing with the financial and business
aspect of the deal.
Underlying Interests
1. Resolve deadlock and establish a dialogue, in order to rebuild the lost trust
between the two and to create a harmonious relationship thereby ensuring
efficient sales of the gaming consoles in the area.
2. Fulfillment of the Annual Target Sale: CC has to ensure that at least 12000
consoles are sold each year to make the entire process economically viable.
3. To declassify the current pandemic as force majeure.
4. Renewing the sales contract.
BATNA
Compu Calc would offer to reimburse 50% of the damages suffered by Edelweiss over
a period of 2 years, in return for Edelweiss ordering 50% more than the stipulated
amount of consoles i.e. 7,500 immediately. Compu Calc would offer to give exclusive
distribution rights to Edelweiss in the country of Pindonesia, in return for Edelweiss
offering to order at least 20,000 gaming consoles in a year.
Other Party’s Interest
1. Securing Financial Interests i.e. Edelweiss needs to recover from the losses that
have been caused due to the pandemic, and at the same time prevent surplus
stocking of gaming consoles.
2. Returning the leftover stock of Ferrari
3. Obtaining Exclusive Distribution Rights of Distribution
4. Renewing the Agreement
Other Party’s BATNA

Offering a higher ordering of consoles at a discounted price inorder to meet the target
and help its business stay afloat.

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TEAM CODE: SKMC92117

S. K. MISRA MEMORIAL INTERNATIONAL

Compu Calc Ltd.

Edelweiss International Ltd.

2. Declassifying the Pandemic as Force Majeure: A crucial element to establish

3. Compu Calc is not liable to compensate any losses borne by Edelweiss

4. Compu Calc is willing to bargain exclusive distribution rights

Other Party’s BATNA

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