The use of a potential contract for risk participation often has an important added value: it creates great goodwill. On the one hand, the contract offers a safety net that limits each company`s losses if an agreement were to go wrong unexpectedly. On the other hand, it reduces the possibility of one company earning a silver win at the expense of the other. A quota treaty therefore tends to increase confidence between the parties and create the necessary conditions for mutually beneficial negotiations in the future. The negotiation dynamic that has played out between the producer and the channel is common in business. Two parties with common interests do not reach an agreement – a sale, a merger, a transfer of technology – because they have different expectations for the future. .
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