ABSTRACT
At the negotiating table, users should end with clear written agreements that their legal team will later finalize. Users hope that these agreements will survive as intended. Starbucks, the cafe chain, found itself in an agreement it could not live with. After a strong start selling coffee products with Kraft in 1998, the environment changed. But there was no date for ending or reviewing the agreement. Design agreements that can survive changes in the environment. Well-designed agreements have clauses that explain what the parties will do in case of changes in the business environment. Create good agreements that encourage success through fair sharing, incentives, communication, and high likelihood of future activities. Use control mechanisms that all sides agree are fair in order to encourage the parties to proactively solve problems and avoid difficulties. Arbitration is a formal process for resolving a dispute and binding the parties to solutions.
