WO2001054030A2

WO2001054030A2 - Negotiating a commercial transaction using internet-based communication

Info

Publication number: WO2001054030A2
Application number: PCT/US2001/001839
Authority: WO
Inventors: John R. Coleman
Original assignee: E-Sprocket Corporation
Priority date: 2000-01-20
Filing date: 2001-01-19
Publication date: 2001-07-26
Also published as: WO2001054030A3; AU2001229647A1

Abstract

A commercial transaction, e.g., the purchase and sale of item of capital equipment, is negotiated using a communication network, e.g., the Internet.

Description

Negotiating A Commercial Transaction Using Internet-Based Communication

TECHNICAL FIELD This invention relates to negotiating a commercial transaction using Internet-based communication.

BACKGROUND

Commercial transactions, such as the purchase and sale of used capital equipment, generally require detailed negotiation. A variety of terms must be negotiated and agreed upon, such as financing, delivery terms, and technical specifications. It is usually necessary to involve third party providers of services, such as shipping and financing. As a result, such transactions are often time-consuming, lengthy and complex, and involve many interactions between the buyer and seller. Moreover, it may be difficult for a new-comer to an industry, or a company in a developing country, to make the contacts necessary to enter into such a transaction. In international transactions, time-zone differences, language barriers, and additional terms relating to import/export issues exacerbate these difficulties.

Some websites allow goods to be purchased in simple consumer transactions, e.g., the un-negotiated purchase of plane tickets or consumer goods or use of an "auction model".

SUMMARY Implementations of the invention provide a user interaction platform that enables parties to a commercial transaction to negotiate the terms of the transaction on-line, using a virtual "negotiation table". The user interface is configured to enable the parties to negotiate a final written agreement, e.g., an eContract™ agreement. The buyer and seller interact and negotiate online by using a private chat window. Some implementations give only one party, e.g., the seller, the ability to edit the contract online as the terms of the transaction are agreed upon, with the other party being restricted to viewing a write-protected version of the contract. In some implementations, the negotiation table also provides the parties with online access to services related to the transaction, for example financing, shipping, marketing, engineering and legal services. Thus, in many cases, the parties can completely negotiate and implement the terms of their agreement using the Internet. As a result, complex commercial transactions can often be negotiated quickly and easily, even by parties in remote locations.

In one aspect, the invention features a method including (a) enabling a first party to a possible commercial transaction involving an item of commerce to post information about the item of commerce on the Internet, (b) enabling a second party to the possible commercial transaction to indicate electronically on the Internet an interest in engaging in the possible commercial transaction, (c) enabling one of the two parties to initiate an electronic negotiation of terms for the commercial transaction, (d) establishing a predetermined one of the two parties as the only one of the two parties that has power to make an effective electronic offer for the item of commerce, and (e) establishing a predetermined one of the two parties as the only one of the two parties that has power to form a contract by making an electronic acceptance of the effective electronic offer.

Some implementations include one or more of the following features. The first party includes a supplier (or a customer) and the posted information includes a listing of the item of commerce (or an inquiry about the item of commerce). The second party includes a supplier (or a customer) and the indicated interest includes an interest in supplying (or acquiring) the item of commerce. The item of commerce includes a product or service, e.g., an item of used capital equipment. At least one of the first party and the second party includes an agent representing a supplier or a customer. The commercial transaction includes a purchase and sale. The electronic negotiation is enabled by a server operated by a third party on the Internet. The server provides a negotiation facility accessible by each of the parties. The negotiation facility includes an electronic messaging service, including, for example, a notification that informs one of the parties of an incoming message from the other party and a chat window to enable interactive communication between the parties. The negotiation facility includes an indicator that enables at least one of the parties to indicate assent to a term proposed by the other party. The negotiation facility includes a user interface that is configured to allow the first party to create a listing providing information regarding the item of commerce. The negotiation facility is configured to allow one of the parties to post a draft contract pertaining to the transaction, and to allow either party to view the posted contract. The negotiation facility includes a user interface configured to allow a customer to create an inquiry describing a needed item of commerce. The negotiation facility includes a window configured to allow one of the parties to record information that cannot be viewed by the other party. The negotiation facility includes a virtual shopping cart configured to allow a customer to keep a record of items of interest. The negotiation facility includes a virtual shopping cart configured to allow a supplier to keep a record of inquiries.

In another aspect, the invention features a method including (a) enabling a supplier of an item of commerce, or an agent of the supplier, to post information about the item of commerce on the Internet, (b) enabling a customer, or an agent of the customer, to indicate electronically on the Internet an interest in purchasing the item of commerce, (c) enabling the supplier or the customer to initiate an electronic negotiation of teπns for the purchase and sale of the item of commerce, (d) establishing a predetermined one of the supplier and the customer as the only one of the two parties that has power to make an effective electronic offer for the item of commerce, and (e) establishing a predetermined one of the two parties as the only one of the two parties that has power to form a contract by making an electronic acceptance of the effective electronic offer.

Some implementations include one or more of the following features. The electronic negotiation is enabled by a server operated by a third party on the Internet, and the server provides a negotiation facility accessible by each of the parties. The negotiation facility includes an electronic messaging service, an indicator that enables at least one of the parties to indicate assent to a term proposed by the other party, and a user interface that is configured to allow the first party to create a listing providing information regarding the item of commerce, and is configured to allow one of the parties to post a draft contract pertaining to the transaction, to allow either party to view the posted contract, and to allow a customer to create an inquiry describing a needed item of commerce.

In yet another aspect, the invention features an Internet website that includes (a) a database containing information pertaining to capital equipment for sale; (b) a location interface configured to allow a prospective supplier or customer to locate information pertaining to a particular item of the capital equipment in the database; and (c) a negotiation interface configured to allow the prospective supplier or customer to negotiate online to reach the terms of a transaction with any party concerning the item.

Some implementations include one or more of the following features. The negotiation interface is configured to enable a supplier and a customer to reach a final written contract by online interaction. The negotiation interface is configured to enable the supplier or the customer to consult a third party supplier or services online. The third party supplier includes a shipping company, an engineering firm, a provider of legal services, or a provider of financing services. The negotiation interface is constructed to allow the written contract to be modified only by a selected one of only the supplier or customer. The negotiation interface includes a chat window to provide interactive communication between the prospective customer and the supplier.

The invention also features a method including (a) providing a website including a database and a user interface; (b) storing input from potential suppliers describing items for sale in the database; (c) receiving an inquiry from a potential customer visiting the website, concerning a particular item; (d) transmitting the inquiry to a supplier of the item; (e) transmitting an agreement to negotiate from the supplier to the potential customer; and (f) transmitting information between the potential customer and the supplier concerning the terms under which the item would be sold.

Some implementations include one or more of the following features. The method also includes receiving a posting of a proposed contract from the supplier, and allowing the potential customer to view the posting. The method also includes preventing the customer from altering the posting. The method also includes receiving an acceptance of the proposed contract from the potential customer and transmitting the acceptance to the supplier. The method also includes receiving proposed modifications to the posting from the potential customer and transmitting the proposed modifications to the supplier.

The invention also features a method of facilitating an electronic negotiation of a possible commercial transaction involving an item of used capital equipment by parties to the transaction, by providing direct electronic access, in the context of the electronic negotiation, by at least one of the parties, to services that are ancillary and necessary to complete the commercial transaction. In some implementations, the services include shipping, engineering consulting, legal services and financing services.

In yet a further aspect, the invention features a method including (a) enabling a first party to a possible commercial transaction involving an item of commerce to post information about the item of commerce on the Internet, (b) enabling a second party to the possible commercial transaction to indicate electronically on the Internet an interest in engaging in the possible commercial transaction, (c) enabling the first party to initiate an electronic negotiation of terms for transfer of the item of commerce by posting a proposed contract to the Internet, and (d) establishing the first party as the only one of the two parties that has the power to revise the posted contract.

In another aspect, the invention features an Internet-based graphical user interface including a window that displays a state of a negotiation between a supplier and a customer of an item of used capital equipment, the window including an indicator that represents the state of agreement between the parties. In other aspects, the invention features digital storage mediums containing software instructions arranged to configure a machine to practice the methods described above.

The invention further features a method including (a) enabling a first party to a possible negotiation to post information about the subject of the possible negotiation on the Internet, (b) enabling a second party to the possible negotiation to indicate electronically on the Internet an interest in engaging in the possible commercial transaction, (c) enabling one of the two parties to initiate an electronic negotiation, (d) enabling the parties to engage in an electronic dialogue over the Internet concerning the negotiation, and (e) enabling the parties to archive the results of their negotiation.

Other features and advantages of the invention will be apparent from the description and drawings, and from the claims.

DESCRIPTION OF DRAWINGS

FIG. 1 is a schematic block diagram of a system according to one embodiment of the invention.

FIGS. 2 is a map of a website. FIGS. 3 and 3 A show homepages included in the website of FIGS. 2.

FIGS. 4-10 are schematic concept diagrams of portions of the website of FIG. 2.

FIGS. 6, 6A and 6B are three thirds of one drawing, as are FIGS. 4 and 4A.

FIGS. 11-1 IB show windows accessible from a seller page of the website of FIG. 2.

FIGS. 12-12B show windows accessible from a buyer page of the website of FIG. 2.

DETAILED DESCRIPTION

Fig. 1 shows a system according to the invention, by which buyers and sellers of capital equipment can negotiate the purchase and sale of such equipment over the Internet. Using a standard web browser, e.g., Internet Explorer, buyers and sellers can connect to a website (operated by a website server) via the Internet. The website server has application software programmed to implement the negotiating functions that will be described below with reference to Figs. 2-10. If services that are ancillary to the purchase and sale become necessary in order to implement the transaction, these services (e.g., shipping, engineering, financing or legal services) can be accessed either through links provided on the website, or directly through the website. The buyer and seller can also contact consultants of their own (for example, their legal counsel) directly, either online or using conventional means such as mail or fax.

There are a variety of ways in which the website host can derive income from hosting the website. The host can provide product marketing services to the website users, such as advertising and direct mail program support, and charge a fee for such services. In addition, or instead, the website host can collect a commission from the buyer and/or seller equal to a percentage of the purchase price.

Referring to Figs. 2, the website includes a group 8 of publicly accessible pages, which can be accessed by anyone, and a group 9 of restricted pages, which can be accessed only by registered users. This arrangement prevents visitors to the website from viewing the details of an item listed for sale, entering into transactions, or entering information into the website's databases (discussed below) without first registering and providing information to the website server. The website includes a homepage 10 that is viewed by a new or unregistered user when the user visits the website. A sample homepage is shown in detail in Fig. 3. From the home page 10, the user can navigate to a site inventory page 12, at which the user can search for items for sale and/or inquiries (requests for the purchase of items). Sample site inventory pages are shown in detail in Figs. 4 and 4A, and will be discussed further below. The data that is accessed through the site inventory page 12 is stored in a site inventory database 14, maintained by the website server. Only registered users of the website can add data to the site inventory database. From the homepage 10, the user can also access an information page 13, to obtain information about the website host (a sample information page is shown in Fig. 9), a site assistant page 15, to obtain help in using the website, and a resources page 17, to obtain various general information and tutorials (a sample resources page is shown in Fig. 10).

New users who enter homepage 10 can also navigate to a new user registration page 16, shown in Fig. 5. The registration page can be accessed from the homepage by clicking on "new users start here" (Fig. 3), or from the site inventory page 12 by clicking on "register now" (Fig. 4). Using this registration page, the user can become a registered user, and thus obtain access to the restricted pages (group 9) discussed above. The registration wizard asks whether the user is a buyer, seller, or both; requests contact information and association affiliations; asks the user to choose a password and ID; and asks the user to fill in credit information if desired. If desired by the website host, a registration Wizard may be used rather than a registration page. Once the user has registered, the user will subsequently enter a registered user's personalized homepage 10' (see Fig. 3 A) upon visiting the website and entering his or her password and ID.

The registered user's homepage 10' is personalized for the particular user, and contains information pertaining to that user's business (entered during registration), a list of the user's listings and/or inquiries, and the user's negotiations in progress. This information is accessible only to that user, and is stored in the user's database 11. Each registered user's homepage 10' includes three navigation buttons: a buy button 54, a sell button 56, and a "my home" button 51 which allows the user to return to the site homepage 10, e.g., to access tutorials or general information and resources. The user's homepage may also contain a navigation tab 53, or a link (not shown), which allows the user to access a services page 22, shown in Figs. 8 and discussed in detail below, to allow the user to obtain services such as appraisal, shipping, financing and engineering services through the website. The buy and sell buttons open buyer and seller pages 20, 24, shown in Figs. 6, 6A and 6B and discussed below. The user's homepage also includes a navigation tab 55 (labeled "My account info" or "My Info/Sys. Messages") that allows the user to access an account information page 21 (shown in Fig. 7) that shows the information entered by the user during registration, displays any messages received from the web server, and allows the user to view any completed and/or terminated contracts that the user has archived. A search inventories tab 57 (Fig. 4) opens the site inventory page 12, allowing the user to search for a desired item or buyer inquiry.

The buyer and seller pages 20, 24 allow the user to create an inquiry (describing an item that the buyer desires to purchase) or a listing (describing an item that is for sale). The buyer and seller pages also provide a negotiation functionality 26, which allows a buyer and seller to negotiate an agreement, e.g., for the purchase and sale of an item, using a virtual

"negotiation table" 28. The negotiation functionality is configured to allow the parties to correspond online regarding terms of the agreement, and reach a final written contract as a result of this online interaction. At any time during negotiations, the buyer and/or seller can access the services page 22 and obtain assistance with regard to services needed to complete the transaction, as discussed below. The creation of inquiries and listings, and negotiation of an agreement, will be discussed in detail below. The buyer page displays a list 58 ("negotiations I started from a listing"), showing the status of ongoing negotiations for the purchase of items (if any), and the seller page displays an inventory index 60, showing the status of negotiations for each of the seller's listings. The buy list and inventory index will be discussed in detail below. Items can be deleted from the buy list and the inventory index by clicking on remove buttons (not shown). The buyer and seller pages also each include a semaphore 59 to indicate when new messages have been received. The buyer and seller pages are shown schematically in Figs. 6, 6A and 6B; examples of windows that can be opened from a buyer and seller page according to one implementation of the invention are shown in Figs. 11-1 IB and 12-12B. Functions of the website will now be discussed in detail.

Creating Listings and Inquiries

Referring to Figs. 6, 6A and 6B, a seller can create a listing describing an item for sale by clicking on the sell tab 56, entering the user's seller page 24, and clicking on the "create new listing" button 64 to enter the "listing document manager" window 68. This window provides a box 100 containing text fields into which the seller can enter information regarding the item for sale. If desired, the seller can create a listing by clicking an attach button and attaching an existing text document. Once the seller has entered information into box 100, the seller can save the information as a new listing, by clicking on button 102. This choice will add the new listing to the seller's inventory index list 60 ("my negotiations", Fig. 11 A), and will add the listing to the site inventory database. Once the listing has been saved, the seller can open the listing and edit it. If the seller wishes to send a listing directly to a particular buyer in response to an inquiry by the buyer, and thus spawn a negotiation table, the seller can do so by clicking on button 90, or by clicking on button 94, editing the listing, and posting the edited version. Window 100 also includes a request button 108, which the seller can click on to send a request for advertising services, e.g., if the seller wishes assistance in advertising or marketing items for sale. This service may be provided for a fee by the website host, if the host so desires.

A buyer can create an inquiry by clicking on the buy tab 54, entering the user's buyer page 20, and clicking on the inquiry creator button 62 to enter an "inquiry document manager" window 66. This window provides a box 63 containing text fields into which the buyer can enter information regarding the item that the buyer wishes to purchase. Once the buyer has entered information into the box 63, the buyer can save the information as a new inquiry, by clicking on button 65. This choice will add the new inquiry to the buyer's "active buy list" 58 ("listings I've saved", Fig. 12), and will add the information to the site inventory database. Once the inquiry has been saved, the buyer can open the inquiry and edit it. Window 66 also includes a request button 69, which the buyer can click on to send a request for location/broker services, e.g., if the buyer wishes assistance in obtaining a particular item. The website host may provide these services or a link to providers of such services, or clicking on this box may bring up a window 71 prompting the buyer to send an email request to an outside provider.

The buyer can also access location services by clicking on the "buyer related location services" button 240 on services page 22 (see Figs. 8). Doing so will open a window 242 that includes information on the user (box 244, preloaded from the user's information obtained during registration), a copy of the user's inquiry document (box 246, either preloaded, if the user entered from his or her seller's page, or attached by clicking on box 248), and any special requests or instructions typed in by the user (box 250). The user can then send the request online, by clicking the send button 252. When a negotiation on the sale of a particular item is successfully completed, the seller is prompted with a notifier asking if they want the listing removed from the inventory database. If the seller chooses "yes," the listing will be removed from the inventory and from "My Listings." If the seller chooses "no," the listing will remain in the inventory database.

Searching for Listings and Inquiries

Site inventory page 12 is shown in Fig. 4. This page allows registered buyers and sellers to search horizontally or vertically for a particular item, or for inquiries pertaining to a certain type of item. (Unregistered users will view a "preview mode" site inventory page 12', shown in Fig. 4A, that is similar to site inventory page 12 but does not allow the user to perform certain functions.)

The user can select between horizontal or vertical searching using drop down menu 27, and between listmgs and inquiries using drop down menu 29. The user can enter a text search into text box 30, or can enter a query by example, e.g., by item description, manufacturer or location, using drop down menus (not shown). The user can also browse for a desired item or inquiry using the "inventory browse" window 34. For example, if the user owns a construction company and is looking for a one-operator backhoe, he would browse using the terms, "Construction Equipment" -> "Backhoe" -> "One person."

Search results are displayed in boxes 35 and 35'. Advertisements for items that are relevant to the user's search request are displayed in a "hot list" box (not shown). Registered users are given the opportunity to put items or inquiries that are displayed in boxes 35 or 35' into a virtual item shopping cart 42 or inquiry shopping cart 44 (see Figs. 6 and 6A) by clicking on box 36. A registered user can view the contents of his or her shopping cart by clicking on box 38. Unregistered users cannot access a shopping cart, but are given the opportunity to register by clicking on box 40. Items can be deleted from the shopping carts by clicking on remove buttons 70.

The site inventory page 12 also gives users the opportunity to ask for help in locating or selling an item, by clicking on boxes 46 and 48, respectively. If a user clicks on box 46, the user is referred to a location/broker service 50. If a user clicks on box 48, the user is referred to an advertising support service 52. As discussed above, these services can be provided either by the website host, or by an outside provider. An outside provider may be contacted by sending an encrypted (secure) email message to the provider with the pertinent information about the item and the sale. In other implementations, the website server communicates directly with these providers' back end systems and provides automatic electronic quotes and procurement.

The seller can also access advertising support services by clicking on the "seller related marketing services" button 220 on services page 22 (see Figs. 8). Doing so will open a window 222 that includes information on the user (box 224, preloaded from the user's information obtained during registration), a copy of the user's listing document (box 226, either preloaded, if the user entered from his or her seller's page, or attached by clicking on box 228), and any special requests or instructions typed in by the user (box 230). The user can also indicate what type of services the user is interested in receiving, by checking boxes 232. The user can then send the request online, by clicking the send button 234.

Opening a Negotiation A negotiation regarding a particular listing can be initiated in one of two ways. A buyer can initiate a negotiation by clicking on a negotiate button in the listing document viewer (this page, not shown, is identical to the eContract portion of the negotiating table window 28, except that instead of the deal accepted buttons it includes a negotiate button 76 and a cancel button 78). Clicking on the negotiate button will send a message to the seller of the item, activating the incoming message semaphore 73 that is associated with the listing in the seller's inventory index 60, and will spawn a negotiating table 28 for the item. The negotiating table will initially be populated with the information supplied by the seller in the listing (this information goes into the eContract section 80 of the negotiating table 28). Clicking on the negotiate button also moves the item from the buyer's shopping cart 42 to the buyer's active buy list 58.

A negotiation can also be initiated by a seller responding to a buyer's inquiry with a specific listing. The seller does this by putting the inquiry in his or her shopping cart 44, and then clicking on the view button 82 in shopping cart 44 that corresponds to the particular inquiry. This brings up a display of the "inquiry document viewer" page 84 for the inquiry. By clicking on the respond button 86, the seller can then view a "select listing" dialog box 88 that lists all of the seller's listings and allows the seller to highlight the desired listing and click on one of three buttons to respond with a listing. The seller can choose to respond to the inquiry with an existing listing that was previously posted by the seller (by clicking on button 90), to generate a new listing in response to the inquiry (by clicking on button 92) or to edit an existing listing (by clicking on button 94). Posting the edited listing will send the listing directly to the buyer. Responding to the buyer with a listing spawns a negotiating table.

Negotiating a Transaction Once the negotiating table has been spawned, the "eContract" window 80 is populated with the information from the seller's listing. The seller can then choose to wait for a response from the buyer to this initial agreement, to edit the agreement, or to correspond with the buyer. To send a message to the buyer, the seller enters text into the "enter text here" box 118 and clicks to send the message. The seller can also attach a file, e.g., a proposed standard contract that the seller has in a word processing document. The file will then be accessible to the buyer through the shared information window. Prior to posting the contract, or to save it as a draft for future revision, the seller saves the contract by clicking on "save" button 120. The seller can post the saved contract by clicking on the send button 122. Until the contract is posted, the buyer cannot view the revised contract. After the seller posts a revised contract, the buyer can choose to either accept the posted contract, by clicking on the "accept deal" button 124, terminate negotiations, by clicking on the "terminate negotiations" button 126, or propose changes to the contract by sending the seller a message in the shared information window 96. The buyer cannot make changes to the contract. If the buyer chooses to accept the current version of the contract, the buyer semaphore in the "deal accepted" box 128 will be activated. If the buyer wishes to send the seller a message, the buyer can do so as described above, by entering text in box 118 and/or by attaching a file.

The seller, in turn, can respond by editing the contract and posting a revised contract (e.g., incorporating the terms suggested by the buyer or other terms acceptable to the seller), by sending a message to the buyer, or by terminating the negotiation by clicking on terminate box 129. While the seller is editing the contract, and until the seller posts a new version, the buyer can only view the last posted version of the contract.

The buyer and seller can continue to communicate in this manner until either an agreement is reached or one of the parties decides to terminate negotiations. Each time one party responds to the other (or the seller posts a new version of the contract), the "incoming message" semaphore for the particular transaction is activated on the other party's buy list or inventory index. These semaphores provide a visual indication that the status of the negotiation has changed. When the seller is editing the contract, the deal accepted box 128 is replaced temporarily by a "contract in edit" box (not shown).

Changes made by the seller to the contract will not affect the contents of the listing on which the contract was initially based (the "root listing") that is stored in the site inventory database 14. Similarly, changes made to the root listing will not be made automatically in the contract. During the negotiations between the buyer and seller, either or both of the parties can navigate to the services page 22, or click on one of the services buttons 130 at the top of the negotiation able 28, to access outside services and consultants needed to complete the transaction. Referring to Figs. 8, from services page 22 the user can click on "negotiation support services" button 209 to access a number of "negotiation support services" windows 210 that allow the user to send information online to providers of services such as financing, appraisal, shipping and engineering. When the user opens a window 210, the "buyer bio" and "seller bio" text fields 212 are automatically populated with information on the buyer and seller. The last posted version of the contract is automatically loaded into the "eContract" field 214. The user can then type text, e.g., instructions and requests, into text field 216, and send the completed request to the service provided by clicking on the send button 218.

Each party can choose to withhold its identity from the other party, or disclose its identity. If one party does not disclose its identity, the other party can send a request for such disclosure, by clicking on the "request ID" button 132, and the anonymous party can either comply, by clicking on the "turn on ID" button 134, or refuse, by cliclcing on the decline button 136.

If either or both of the parties wishes to have the posted contract reviewed by a third party, e.g., legal counsel or an engineering consultant, that party can click on the "preview eContract" button 138 to open the "eContract viewer" window 140. From this window, the user can print out the contract for review or to send a hard copy, or forward the document electronically by entering an email address in the "forward to" box 142. The seller can also print out or forward a saved copy of the contract that the seller has not yet posted.

Terminating Negotiations

As discussed above, at any stage in the negotiation either of the parties can terminate the negotiation. Termination is the electronic version of, "walking away from the table."

After clicking on the "terminate negotiation" button 126 or 129, the tenninating party will be prompted to confirm that termination is desired. If the party confirms, then a message will be sent to the other parry indicating that negotiations have been terminated. The parties can also enter into a termination dialog, e.g., discussing reasons for termination (see "termination dialog" windows 200 in Fig. 6A).

A copy of the terminated negotiation is archived, and is accessible to each party to the terminated negotiation. Terminated negotiations may be viewed by entering the user's account information page 21, and clicking on the appropriate listing in the "my terminated negotiations" box 202. If the user then desires to reopen negotiations, the user can click on "reactivate" button 204 in the "terminated negotiation viewer" window 206. Doing so will take the contract that had been under negotiation out of the archive, place the last posted contract in the parties' buy list and inventory index, and send a signal to the other party indicating an incoming message.

Finalizing the Agreement

The seller cannot accept the contract prior to acceptance by the buyer. If, at any stage in negotiations, the buyer accepts the contract, the seller can then acknowledge the buyer's acceptance by clicking on box 144. The seller cannot edit the contract once the buyer has accepted - the seller must either acknowledge the buyer's acceptance, terminate, or return to the negotiation.

Clicking on box 144 will activate the seller's semaphore in the "deal accepted" box 128. Once the seller has accepted, the transaction is completed and the contract is frozen. The contract may then be printed out and executed by the parties. No further changes may be made to the contract by either party. The final contract is archived in the user's databases of both parties, and may be accessed by entering the user's account information page 21 and clicking on the appropriate listing in the "my completed eContract archive" window 208. In some implementations, the chat window dialogue will also be archived.

The invention may be implemented using an Oracle 8i Enterprise database cluster to store the information needed by the site server and IBM WebSphere as an application server running on the site server. Java servlets and Java server page functionaUty may be used on the site server. Development can be based on a standard model/view/controller framework. Other embodiments are within the claims.

For example, while the invention has been discussed above in the context of purchase and sale transactions, the methods and systems of the invention can be used to facilitate other types of transactions, such as leases and licenses. Additionally, the methods and the systems of the invention can be used to facilitate complex negotiations that do not involve commercial transactions, e.g., the discussion and revision of a journal article by two parties, and allow the parties to the negotiation to archive their discussions, a final version of the document being discussed, and, if desired, some or all of the intermediate versions of the document.

Moreover, while the website described above does not allow the buyer to make changes to the contract, other implementations may allow both parties, or the buyer only, to modify the contract.

Also, while transactions between buyers and sellers are discussed above, either party may be represented by a dealer, broker or other agent.

Claims

WHAT IS CLAIMED IS:

1. A method comprising enabling a first party to a possible commercial transaction involving an item of commerce to post information about the item of commerce on the Internet, enabling a second party to the possible commercial transaction to indicate electronically on the Internet an interest in engaging in the possible commercial transaction, enabling one of the two parties to initiate an electronic negotiation of terms for the commercial transaction, establishing a predetermined one of the two parties as the only one of the two parties that has power to make an effective electronic offer for the item of commerce, and establishing a predetermined one of the two parties as the only one of the two parties that has power to form a contract by making an electronic acceptance of the effective electronic offer.

2. The method of claim 1 in which the first party comprises a supplier (or a customer) and the posted information comprises a listing of the item of commerce (or an inquiry about the item of commerce).

3. The method of claim 1 in which the second party comprises a supplier (or a customer) and the indicated interest comprises an interest in supplying (or acquiring) the item of commerce.

4. The method of claim 1 in which the item of commerce comprises a product or service.

5. The method of claim 1 in which the item of commerce comprises an item of used capital equipment.

6. The method of claim 1 in which at least one of the first party and the second party comprises an agent representing a supplier or a customer.

7. The method of claim 1 in which the commercial transaction comprises a purchase and sale.

8. The method of claim 1 in which the network comprises the Internet.

9. The method of claim 1 in which the electronic negotiation is enabled by a server operated by a third party on the Internet.

10. The method of claim 9 in which the server provides a negotiation facility accessible by each of the parties.

11. The method of claim 10 in which the negotiation facility includes an electronic messaging service.

12. The method of claim 11 in which the electronic messaging service includes a notification that informs one of the parties of an incoming message from the other party.

13. The method of claim 11 in which the electronic messaging service includes a chat window to enable interactive communication between the parties.

14. The method of claim 10 in which the negotiation facility includes an indicator that enables at least one of the parties to indicate assent to a term proposed by the other party.

15. The method of claim 10 in which the negotiation facility includes a user interface that is configured to allow the first party to create a listing providing information regarding the item of commerce.

16. The method of claim 10 in which the negotiation facility is configured to allow one of the parties to post a draft contract pertaining to the transaction.

17. The method of claim 16 wherein the negotiation facility is configured to allow either party to view the posted contract.

18. The method of claim 10 in which the negotiation facility includes a user interface configured to allow a customer to create an inquiry describing a needed item of commerce.

19. The method of claim 10 in which the negotiation facility includes a window configured to allow one of the parties to record information that cannot be viewed by the other party.

20. The method of claim 10 in which the negotiation facility includes a virtual shopping cart configured to allow a customer to keep a record of items of interest.

21. The method of claim 10 in which the negotiation facility includes a virtual shopping cart configured to allow a supplier to keep a record of inquiries.

22. A method comprising enabling a supplier of an item of commerce, or an agent of the supplier, to post information about the item of commerce on the Internet, enabling a customer, or an agent of the customer, to indicate electronically on the Internet an interest in purchasing the item of commerce, enabling the supplier or the customer to initiate an electronic negotiation of terms for the purchase and sale of the item of commerce, establishing a predetermined one of the supplier and the customer as the only one of the two parties that has power to make an effective electronic offer for the item of commerce, and establishing a predetermined one of the two parties as the only one of the two parties that has power to form a contract by making an electronic acceptance of the effective electronic offer.

23. The method of claim 22 in which the electronic negotiation is enabled by a server operated by a third party on the Internet, and the server provides a negotiation facility accessible by each of the parties.

24. The method of claim 23 in which the negotiation facility includes an electronic messaging service, an indicator that enables at least one of tlie parties to indicate assent to a term proposed by the other party, and a user interface that is configured to allow the first party to create a listing providing information regarding the item of commerce, and is configured to allow one of the parties to post a draft contract pertaining to the transaction, to allow either party to view the posted contract, and to allow a customer to create an inquiry describing a needed item of commerce.

25. An Internet website comprising a database containing information pertaining to capital equipment for sale; a location interface configured to allow a prospective supplier or customer to locate information pertaining to a particular item of said capital equipment in said database; and a negotiation interface configured to allow the prospective supplier or customer to negotiate online to reach the terms of a transaction with any party concerning said item.

26. The website of claim 25 wherein said negotiation interface is configured to enable a supplier and a customer to reach a final written contract by online interaction.

27. The website of claim 26 wherein said negotiation interface is configured to enable the supplier or the customer to consult a third party supplier or services online.

28. The website of claim 27 wherein said third party supplier comprises a shipping company.

29. The website of claim 27 wherein said third party supplier comprises an engineering firm.

30. The website of claim 27 wherein said third party supplier comprises a provider of legal services.

31. The website of claim 27 wherein said third party supplier comprises a provider of financing services.

32. The website of claim 26 wherein said negotiation interface is constructed to allow said written contract to be modified only by a selected one of only the supplier or customer.

33. The website of claim 25 wherein said negotiation interface includes a chat window to provide interactive communication between said prospective customer and said supplier.

34. A method comprising providing a website including a database and a user interface; storing input from potential suppliers describing items for sale in said database; receiving an inquiry from a potential customer visiting said website, concerning a particular item; transmitting said inquiry to a supplier of said item; transmitting an agreement to negotiate from said supplier to said potential customer; and transmitting information between said potential customer and said supplier concerning the terms under which said item would be sold.

35. The method of claim 34 further comprising receiving a posting of a proposed contract from said supplier, and allowing said potential customer to view said posting.

36. The method of claim 35 further comprising preventing said customer from altering said posting.

37. The method of claim 35 further comprising receiving an acceptance of said proposed contract from the potential customer and transmitting said acceptance to said supplier.

38. The method of claim 37 further comprising receiving proposed modifications to said posting from said potential customer and transmitting said proposed modifications to said supplier.

39. A method comprising facilitating an electronic negotiation of a possible commercial transaction involving an item of used capital equipment by parties to the transaction, by providing direct electronic access, in the context of the electronic negotiation, by at least one of the parties, to services that are ancillary and necessary to complete the commercial transaction.

40. The method of claim 39 wherein said services comprise shipping.

41. The method of claim 39 wherein said services comprise engineering consulting.

42. The method of claim 39 wherein said services comprise legal services.

43. The method of claim 39 wherein said services comprise financing services.

44. A method comprising enabling a first party to a possible commercial transaction involving an item of commerce to post information about the item of commerce on the Internet, enabling a second party to the possible commercial transaction to indicate electronically on the Internet an interest in engaging in the possible commercial transaction, enabling the first party to initiate an electronic negotiation of terms for transfer of the item of commerce by posting a proposed contract to tlie Internet, and establishing the first party as the only one of the two parties that has the power to revise the posted contract.

45. An Internet-based graphical user interface comprising a window that displays a state of a negotiation between a supplier and a customer of an item of used capital equipment, the window comprising an indicator that represents the state of agreement between the parties.

46. A digital storage medium containing software instructions arranged to configure a machine to provide a website including a database and a user interface; store input from potential suppliers describing items for sale in said database; receive an inquiry from a potential customer visiting said website, concerning a particular item; transmit said inquiry to a supplier of said item; transmit an agreement to negotiate from said supplier to said potential customer; and transmit information between said potential customer and said supplier concerning the terms under which said item would be sold.

47. A digital storage medium containing software instructions arranged to configure a machine to facilitate an electronic negotiation of a possible commercial transaction involving an item of used capital equipment by parties to the transaction, by providing direct electronic access, in the context of the electronic negotiation, by at least one of the parties, to services that are ancillary and necessary to complete the commercial transaction.

48. A digital storage medium containing software instructions arranged to configure a machine to enable a first party to a possible commercial transaction involving an item of commerce to post information about the item of commerce on the Internet, enable a second party to the possible commercial transaction to indicate electronically on the Internet an interest in engaging in the possible commercial transaction, enable the first party to initiate an electronic negotiation of terms for transfer of the item of commerce by posting a proposed contract to the Internet, and establish the first party as the only one of the two parties that has the power to revise the posted contract.

49. A method comprising enabling a first party to a possible negotiation to post information about the subject of the possible negotiation on the Internet, enabling a second party to the possible negotiation to indicate electronically on the Internet an interest in engaging in the possible commercial transaction, enabling one of the two parties to initiate an electronic negotiation, enabling the parties to engage in an electronic dialogue over the Internet concerning the negotiation, and enabling the parties to archive the results of their negotiation.