What are some circumstances under which the coase theorem fails to apply?

Circumstance under which the Coase theorem fails;

This theorem is not suited for practical applications because the initial allocation of property rights may affect the final result of the negotiations.

Explanation:

The Coase theorem was developed by an economist named Ronaldo Coase. This theorem was introduced to resolve the issues involved during the price distribution in property rights. Also, it states that the price of a property can be bargained between the two individuals to get a positive result. But this theorem is not applicable for all situations, as the people who have the right to own his property expect to sell it at a higher rate than the market value. This will leads to internal conflicts between the seller and the buyer and it affects the final price of that property.