Name:: Uganda Christian University Faculty of Law
Name:: Uganda Christian University Faculty of Law
FACULTY OF LAW
_____________________________
NAME:
RICH BROTHER
My brother came to my house asking for a loan to pay school fees for his eldest son in Kings
College Budo and his other children yet he owes me UGX 4,000,000. Time was of the
essence as the first installment of fees at Budo (UGX 3,500,000) was due in two days.
My brother is in real estate business which I believe is more of gambling and speculation.
The Concrete details of the situation he was in had an impact because I understood the
situation from his side of the story. Despite this, i put myself in his shoes and listened to my
brother so that we engage in a negotiation to try and help him.
Rather than argue over positions because arguing over positions is inefficient, I realized the
need to produce a wise agreement for both I and my brother. To achieve this, we had to make
sure that each side’s legitimate interests are met and avoid any conflicts and so we made a list
of these interests: my brother wanted help to pay a school fees for his children but I also
wanted his eldest son educated at Budo because ‘a Budo man is a man with a difference’
since both of us went to Budo and two of his children were also there therefore it would be a
great achievement for our family if another member went through Budo as this would change
his life forever.
Considering that negotiation should be efficient, It should improve or at least not damage the
relationship between the parties, I decided to give my brother assistance of about 4 million
shillings.
We agreed that I will offer him this money because this could help improve the relationship
between us, failure to help totally would damage the relationship (brotherhood) something
that would go against the criteria of a good negotiation.
Most negotiations take place in the context of an on-going relationship where it is important
to carry on each negotiation in a way that will help rather than hinder future relations and
future negotiations. Assisting my brother with the school fees would help promote future
relations.
We decided to discuss our perceptions realising that one way to deal with differing
perceptions is to make them explicit and discuss them with the other side. I his told my
brother of my fear that since he had money he owed me he would most likely not be in
position to pay off the money he was requesting for. My brother informed me of the
prospects of his real estate business improving.
To invent creative options, we separated the act of inventing options from the act of judging,
we had to look for options to broaden the options on the table rather than look for a single
answer. In giving my brother the 4 million shillings i suggested that his other children would
go to much cheaper schools for as long as they attained education. In trying to make sure my
interests were catered for we invented the option of paying back the money with a small
interest rate of 1% rather than in an interest of a bank where it would be at 10%. This helped
cater for his interest of paying fees for the children but also left me confident that my
interests would be considered.
In doing this, we insisted on using objective standards that is by inviting my nephew who is
a real property valuer to help estimate the productivity of my business basing on the current
market value in real estate property. This was done to ensure that my fears that the business
won’t improve are settled but on the other hand ensure that he does not leave his business.
I knew that I wanted my money to be paid but was also flexible to welcome fresh ideas like
payment of my money with a small interest rate, contacting a real property valuer to see
about the possibility of improvement in my business.
In considering interest not position every negotiator has two kinds of interests: in the
substance and in the relationship. At a minimum, a negotiator wants to maintain a working
relationship good enough to produce an acceptable agreement if one is possible given each
side's interests. We communicated to each other and avoided blame games, i spoke to be
understood and listening enabled me to understand his side of the story.
In the end, we agreed that my brother would give me the required money for the first
installment (UGX 3,500,000) which is urgently required. After securing the enrollment, he
would extend to me the remainder of the school fees at least for the first term, since he did
not have it at that time. At that point, I was confident I would have started to earn big from
my real estate business so as to pay the fees myself and start repaying my brother the loan
money.
JOURNAL ENTRY II: BUYER AND SELLER
I contracted with a young and upcoming advocate to sell him a 3 bedroomed house in Mengo.
The purchase price was UGX 119,000,000 shillings which is the “firm price” as my father
termed it and I was given no authority to bargain. My father wants this Mengo home sold so
that he can get comfortable retirement token. In addition, if I failed to sell the house it would
most likely be listed with estate broker raising the asking price by 7% to cover brokerage
commission.
In agreement with the buyer’s idea of finding out the market value of the home I intended to
sell, we invented the option of getting real estate valuer to assess the cost of the house
because my father wanted the home sold at a very high price and yet it was cheaper than the
money he wanted.
In reconciling interests and not positions we identified each other’s interests which was
getting money for my father’s comfortable retirement and a good house for the buyer.
Knowing that insisting on positions is inefficient and unwise, as a seller I considered
selling the house to him at a slightly lower price of UGX 117 million shillings because the
real estate valuer’s report disclosed need for renovation on the walls and the roof that would
cost around UGX 2 million.
Since a good negotiation aims at producing a wise agreement, one that caters for the
legitimate interests of the different parties in a negotiation, I therefore accepted the sum of
117million shillings because the money attained would still help guarantee comfortable
retirement for my father but also help the buyer (the young advocate) acquire a good house.
Both our interests would therefore be catered for.
As a seller, I knew what I wanted however I had an open mind, assuming a fixed pie could
not help the situation at hand, I was open to the idea of being paid money slightly lower
because I believed such would still guarantee comfortable retirement. The buyer persuaded
me by saying what amounts to comfortable retirement is relative
Considering that he is a young advocate I put myself in his shoes, his desire to get a house
that is befitting of his status. I therefore allowed getting into negotiations with him.
Realizing that even apart from a shared interest in averting joint loss, there almost always
exists the possibility of joint gain, i considered the inclusion of the house in the list with real
estate broker, and the price would increase making it even harder for people to buy this
house. Therefore, accepting a slightly lower price (117) million shillings would ensure that
the house is sold catering for the interest of getting money to guarantee a comfortable
retirement for my father. This created a mutually advantageous relationship satisfying the
interests of each side with a creative solution of selling off the house.