Negotiation Strategy Example: Ruby The Apartment Contract Dispute Assessment

Assessment Task

Fact scenario

Ruby Zhe is an experienced property investor who has entered into a contract to purchase an apartment in "The Glades" - a luxury off-the-plan development in Avalon on the northern beaches of Sydney. The purchase price is $5 million, and Ruby has signed a contract with Peninsula Developments Pty Ltd and has paid a 10?posit. The expected completion date was January 2025, but construction has been delayed. Ruby has just received notification that the development is now complete, and settlement is scheduled for September 2025. However, after visiting the property last week, Ruby has several concerns:

1. The apartment has a large planter box under the east facing window. Ruby thought that the apartment had a small east facing balcony;
2. The promised ocean views are partially obstructed by another building not shown in marketing materials;
3. Several premium fixtures and fittings specified in the contract schedule are missing or substituted with cheaper alternatives.

The contract has a “some changes permitted" clause. You may assume that the position of both Ruby and Peninsula Developments is that they rely on their contractual rights. Ruby says the apartment is not what she agreed to buy and that there are grounds for rescission of the sale contract. Peninsula Developments says the plans show a planter box and not a balcony and otherwise rely on the ‘some changes permitted’ clause in the contract.

The parties are to meet to try to resolve this issue using the techniques of interest-based negotiation.

FACTS KNOWN TO PENINSULA’S CONVEYANCER ONLY

• Ruby is not the only purchaser who has raised these issues;
• There have been a number of complaints about Penninsula Developments made to the NSW Building Commissioner and Fair Trading;
• There is currently threatened litigation between Peninsula Developments and the builder over the balcony issue;
• Peninsula Developments would prefer to avoid litigation with any of the purchasers.

FACTS KNOWN TO RUBY’S CONVEYANCER ONLY

• Ruby, through her own enquiries, knew that the view would be partially obstructed by the other building;
• Ruby is also under contract to purchase another off the plan apartment which is due for settlement at a currently unknown date later in 2025;
• Although Ruby’s investments have performed well in recent years, she has over stretched herself and will struggle to be able to purchase both properties.
• The Glades is not her preferred property. She is prepared to settle at a discount but otherwise she is keen to minimise her loss (if any) arising from the investment.

Further instructions in undertaking the negotiation

• For the purpose of this exercise, all students have been provided with all facts.
• The negotiation is to be conducted in character with reference to the common facts and the facts which are known only to their client. The facts which are only known to each party can be disclosed during the negotiation if it is appropriate to do so
• There are a range of outcomes. There is no right or wrong answer. Demonstration of an understanding of interest based negotiating is what is important

Required

Part A: Negotiation Outline (worth 30% of total value of assessment)

• Prepare a one (1) page negotiation outline from the perspective of the party you are representing in accordance with the Negotiation Guide uploaded to Ilearn.
• You will upload your outline as a word document into the Turnitin link which is part of the Assessment link portal on Ilearn under the 50% Mid-term assessment section of Ilearn.

Assessment Summary and Mentor Guidance

1. Summary of Assessment Requirements

The task required students to prepare a one-page negotiation outline based on a property dispute between Ruby Zhe (the purchaser) and Peninsula Developments Pty Ltd (the developer of The Glades). The scenario demanded an interest-based negotiation approach, rather than rigidly relying on contractual rights. Students were expected to:

• Identify key facts, issues, and interests for their client.

• Consider common facts and confidential facts, using discretion in disclosure.

• Apply negotiation techniques (problem-solving, option generation, win-win strategies).

• Prepare a structured outline according to the Negotiation Guide on iLearn.

• Demonstrate understanding of how negotiation differs from litigation and adversarial positions.

This assessment carried 30% weightage of the mid-term evaluation.

Approach by the Academic Mentor

The Academic Mentor guided the student through the following stages:

Step 1: Understanding the Case Context

• The mentor emphasized carefully reading both the common facts (e.g., delay in settlement, substitution of fixtures, balcony vs planter box dispute) and confidential facts (e.g., Ruby’s financial strain, alternative property purchase, and willingness to settle at a discount).

• This helped the student distinguish between positions (“I want to rescind”) and interests (“minimize loss, avoid double financial burden”).

Step 2: Structuring the Negotiation Outline

• The mentor introduced the Negotiation Guide framework, which includes:

  • Issues for negotiation.

  • Interests of the client.

  • Interests of the other party.

  • Possible options for agreement.

  • BATNA (Best Alternative to a Negotiated Agreement).

• The student was shown how to fit Ruby’s case into this template.

Step 3: Applying Interest-Based Negotiation Principles

• The mentor stressed moving beyond “legal rights” and focusing on practical solutions.

• Ruby’s true objective (discounted settlement to reduce financial strain) was mapped against Peninsula’s interests (avoid litigation, reputation protection).

• This helped shape options such as price reduction, additional fixtures compensation, or flexible settlement terms.

Step 4: Drafting the Outline

• The student prepared a one-page summary balancing Ruby’s confidential interests with strategic disclosure during negotiation.

• The mentor ensured clarity, conciseness, and alignment with assessment requirements.

Step 5: Reviewing Against Marking Criteria

• The final outline was checked for:

  • Coverage of issues and interests.

  • Logical structure.

  • Demonstration of negotiation theory in practice.

  • Professional presentation suitable for Turnitin submission.

Final Outcome and Learning Objectives Covered

The outcome was a well-structured one-page negotiation outline representing Ruby’s side. It captured:

• Key issues: balcony vs planter box, obstructed views, missing premium fixtures, construction delays.

• Client interests: minimizing financial loss, willingness to settle at a discount, avoiding litigation costs.

• Other party’s interests: avoiding litigation, protecting reputation, resolving disputes quickly.

• Options for resolution: price discount, reinstatement of fixtures, partial refund, extended settlement terms.

• BATNA: proceeding with legal action for misrepresentation and breach of contract.

Learning objectives achieved:

• Application of interest-based negotiation techniques.

• Differentiation between positions and interests.

• Understanding how to balance confidential information with strategic disclosure.

• Building a practical, solution-oriented outline that could be used in real-world property disputes.

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