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haviour in negotiation led the court to set aside a purported agreement to serve a notice of discontinuance.” [22] ‘In the case of Spaulding v. Zimmerman [23] , Spaulding a minor was injured in an accident. There was a medical test conducted and doctors claimed his wounds to be healed completely. The defense lawyers had him examined by their doctors to find any substantive material for defense. They found an aneurysm, which they did not disclose. After grant of settlement when Spaulding discovered this problem he sued to set aside the settlement. The court granted his prayer and vacated the order.’ [24] ‘In Stare v. Tate [25] , there was a divorce negotiation and involved equal distribution of property. Due to miscalculation of Stare’s she received less share, Tate’s attorneys were aware of this miscalculation. The court ordered resettlement and gave her remaining claim.’ [26] However ‘in case of Brown v. County of Genesee [27] , the diabetic employee could have got higher salary than the one she got because county lawyers did not disclose certain things to her. Court held that she or her lawyer did not check the public records and opposite party lawyers were not obliged to inform her about any such records. The mistake was from both sides.’ [28]

B. Lying in Negotiation

Telling the truth is one of the major issue in negotiating. Negotiators avoid disclosing the complete truth. “Effectiveness in negotiations is central to the business of lawyering and a willingness to lie is central to one's effectiveness in negotiations.” [29] Lawyers may use various types of lies to negotiate. False claims are made on the value and history of movable and immovable property. Rates may be inflated or vice versa. They make false promises and may lie about the authority and power given to them by the client. They may conceal their interest in the outcome of the deal. They may also hold back facts regarding third party reservation or claims in property. False or incorrect claims may also be made; they may not also disclose alternative agreements which may prove more beneficial. “These lies operate to misrepresent our willingness to settle, the price above which we will not buy (or below which we will not sell), our client's insistence on custody, the presence or activities of competing bidders, or our availability and readiness for trial.” [30] ‘In Virzi v. Grand Trunk Warehouse & Cold Storage Co. [31] , the court set aside an agreement because lawyers did not disclose death of the client before the settlement.’ [32] Similarly in case of ‘Kentucky Bar Ass'n. v. Geisler [33] , the attorney was publicly reprimanded for failing to inform the defense attorney about the death of plaintiff during the negotiation.’ [34]

C. Is lying ethically permissible.

Honesty is the best policy is what many lawyers assert and that is most profitable in the long run. They maintain that lying in negotiation is ineffective. Others seem to say that lying is not a serious problem in negotiation, because those lies are ethically permissible. [35] “The American Model Rules of Professional conduct states that a lawyer shall not knowingly make a false statement of material or law to third person and rule 4.1 a paragon of charity says “A Lawyer may not lie”” [36] . “While Rule 4.1 prohibits the knowing misrepresentation of material fact or law, Comment 2 expressly recognizes that statements regarding client values and settlem