81. The Law of Authority

You can negotiate successfully only with a person who has the authority to approve the terms and conditions you agree upon.

One of the most common of all negotiating ploys is called an “agent without authority.” This is a person who can negotiate with you but who is not authorized to make the final deal. No matter what is agreed upon, the agent without authority must check back with someone else before he or she can confirm the terms of the agreement.

The first corollary of this law is You must determine in advance if the other party has the authority to make the deal.

The simplest way to do this is to ask the person if he or she is authorized to act for the company or client. If it turns out that he or she is not, ...

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