International Negotiations

2 

 1.18 

Go through the example with the class. Trainees then work in pairs or groups of 

three to make clarifying questions. Then play the recording for trainees to check. Discuss any 

differences with the class.

Language notes

•  A deferred payment is one that comes later than usual.

•  A penalty clause is part of a contract which states what the penalty is if one party fails 

to fulfil its obligations. In most English-speaking countries, penalty clauses are non-

enforceable, i.e. a court will not force the breaching party to pay. To avoid this problem, 

it is important to avoid even mentioning penalty clauses in a negotiation, and to use 

liquidated damages clauses instead, whose aim is to compensate rather than punish.

•  Product specs 

/speks/

, or specifications, include things like dimensions, weight, 

materials, functions, etc..

•  A breakdown of costs is an analysis of all the elements that contribute to the total cost.