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e not tell the prospect that part of the land may be acquired shortly for road widening. Instead he points out the benefits of road touch land, making the prospect feel like he is getting a good bargain. However, a cooperative negotiator would not hide that fact.

There is always some extra amount which is to be distributed in the form of negotiation profit during negotiation. Whoever can make best use of their skills gains maximum. For example, in situation of divorce, there is a property, house, car and jewelry that needs to be distributed amongst the spouses. A competitive negotiator will use coercion, assertive and tough language and will not listen to the other. They will try and get maximum gain for their client, whereas the cooperative negotiator will give rather than take. Therefore this situation only benefits a competitive negotiator and not a cooperative one.

Competitive negotiators look for weakness in the opposite party and use it in their best interest. For example, John needs to make a shift from one place to another. He decides to sell his beautiful rugs and chandelier because the cost of transporting them is almost the same as compare to buying a new one. Wilma comes and would like to buy, John demands more than she expects. She doesn’t have that much money. Through conversation she learns that he needs to leave the place in 2 days hence in hurry to sell the goods. She makes a final offer and puts the cash in front of him, assuring she would pick them up in an hour. John has to accept because of the hurry he is into and dispose off the goods. In this case a cooperative negotiator may have given John the price he requested.

In Panama Canal case, a French company had started construction of the Panama Canal. It went bankrupt due to crisis. The U.S. government was interested in this canal route. The company wanted to sell off for $ 109 million. US was ready to offer only $ 40 million. The US Rear Admiral who was in charge of this negotiation, hinted that they were looking for other canal in Nicaragua. To make it look genuine, there was news leaked in newspaper about this new canal route. When the company’s president resigned the shareholders pressurized the company to accept any deal from US. Thus the Rear Admiral got a settlement for the price he wanted, by showing interest in other canal which he had no intention to build. [19]

Therefore in situations where cooperative negotiation seems beneficial, it is actually a competitive negotiator who takes bigger share of profit, as compared to cooperative negotiator. Since competitive negotiators gain more benefit for their clients they are more efficient and effective than cooperative negotiators.

IV. Lying in Negotiation – Whether ethically permissible?

A. Ethics in Negotiation

Ethics are broadly applied social standards for what is right or wrong in a particular situation or process. They differ from morals due to individual and personal belief. Ethics come from philosophies which purport to define the nature of the world we live in or lay down rules for living together. [20] A negotiator may use a different approach, but however during a negation they may use various strategies that may work including unethical tactics. In the negotiating process the law does not permit or encourage unethical techniques or practices. “In Ernst Young v. Butte Mining plc [21] , misleading be