renegotiate


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renegotiate

An agreement to revise the terms of a contract.Promissory notes,mortgages,leases, and other contracts can typically be renegotiated if failure to do so will result in default and that default would be economically disadvantageous to the other party. This power to renegotiate is exemplified by the old saying referring to loans from small banks,“If you owe the bank $10,000, they own you. If you owe the bank $1,000,000, you own them.” A debtor in bankruptcy can force renegotiation of onerous contract terms,such as a long-term lease at above-market rental rates.

References in periodicals archive ?
Bush, a former governor of Texas, defended NAFTA then, saying, "now is not the time to renegotiate NAFTA or walk away from NAFTA."
Sharp executives pointed out that Sharp doesnt want its bad business performance bringing financial burden on Hon Hai and thus is willing to renegotiate the prices for Hon Hai to obtain 9.98% stake in Sharp, according to Guo.
A spokesperson of the British company said that GSK is ready to renegotiate the deal but the first step should be made by the French government.
* 22% of retailers surveyed said they did not make any efforts to renegotiate leases.
With the onset of the credit crunch, many divorcees who had already submitted the terms of their financial settlements now want to renegotiate to ensure they aren't losing too much, as the current economy has significantly reduced the value of properties, investments and salaries.
'Saudi Aramco believes that if they renegotiate with the bidders,they would reduce the price and they would be happy,' a contractor said.
Third, if it seems daunting to renegotiate on your own, consider creating an independent network of practices to raise your bargaining power.
ExpressJet Chairman and CEO Jim Ream commented yesterday "The regional sector is under a lot of pressure to renegotiate rates." He said the company continues to negotiate its 2007 service agreement with CO and hopes to complete it by Dec.
Justice Minister Juan Fernando Lopez Aguilar told a Spanish newspaper that the government, headed by Prime Minister Jose Luis Rodriguez Zapatero, would renegotiate a deal the government signed with the Vatican in 1979 assuring public financing of the church, Agence France-Presse reported in late May.
While going out of its way to exempt the WTO from its criticism, the News has suggested that it may be necessary for the Bush administration to "tear up the general trade agreement and renegotiate it with states' rights in mind."
To prevent such a situation, a company should consider a sale-leaseback with a long-term (50-60 years) lease, thereby delaying the need to relocate or renegotiate until the asset will likely be obsolete.
Further, while going through the inspections should clear the materials to be accepted by the consumer in China, he adds that mills in China will sometimes file a claim or reject the load as a way to renegotiate a better price.