You are under contract with your current employer for one year at a time. You have been offered a renewal contract that will commence three months from now; however, by the terms of the offer, you must accept it within the next ten days or it will be revoked. You are virtually certain that this will the last year work is available with this employer because it is experiencing financial difficulties. You have a great potential position pending with another employer. Although the organization's authorized representative has indicated that you are the top candidate, no formal offer is likely to materialize for at least thirty days.

1. What options does each of the three parties have?

2. How should those options affect each party's negotiation strategy?

3. Play the role of each party in assessing the other's likely behavior or strategy for the negotiation. Discuss each party's behavior.