The entrant is better off with the ability to

This preview shows page 1 - 2 out of 2 pages.

The entrant is better off WITH the ability to withdraw. She is losing far less than she would be if she stayed. If she stayed, they would both be losing the same amount, and over time that can become costly. So having the ability to choose is a good thing for the entrant.
Discussion Week 6 Consider the following hypothetical. You’ve entered into a contract to purchase a new house, and the closing is scheduled for next week. It’s typical for some last-minute bargaining to occur at the closing table, where sellers often try to sweeten the deal. You have three options for the closing: (1) attend yourself; (2) send an attorney authorized to close only per the previously negotiated terms; or (3) pre-sign all the closing documents per the current terms, and do not attend the closing. Evaluate the strength of your bargaining position for each option. Which of these would be the most advantageous? Explain your reasoning. Post your answer to the discussion board. First, it seems that at a closing there should be no additional negotiation of terms and conditions; this would have been  completed in advance of the closing so all the paperwork could be completed. However, given this hypothetical situation,  it would be crucial to determine the costs and the benefit of the negotiation and the contract changes in the last minute deal given the three options. There are 3 options that are provided in this example: Attend yourself Send an attorney Do not attend To determine the best option, offers and the payoffs should be reviewed. There is always a cost involved in attending a meeting. This would include opportunity costs, cost of negotiation and the likes. Benefits would include some changes in fees, some small fee rebates, etc. All outside variables need to be considered and then the best decision can be taken.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture