Most contracts include clauses that protect businesses and allow them to bring an action to court to settle disputes. But litigation is only one of many approaches when resolving business matters. Resolution is also possible through negotiation. If you are considering negotiation to handle ongoing business issues, here are some things that can help you determine if it is a suitable method for you.
Quick and efficient
While it may not always be the case, negotiation can save business owners more time and resources. Processing disputes in courts is usually a lengthy and costly procedure. With negotiation, parties have control over the duration, which can be relatively shorter than litigation. And the faster the discussion ends, the lower cost the parties may have to cover for attorney and other applicable fees.
Private and confidential
When a commercial dispute is filed in court, information relating to the case becomes part of the public record and, therefore, is accessible to the public. This can affect a business’s reputation and put a company in a bad light. With negotiation, the dispute details will only be available to the parties.
Flexible terms
With business disputes in courts, the judges will decide on the case after considering the available documents and circumstances. In negotiation, parties can arrange an agreement based on their interests and needs. The process provides flexibility to communicate what they are willing to offer and receive.
Maintained business relationships
Litigation sometimes creates the impression that parties must only argue and counter-argue. This can leave a sour relationship between parties during and after the procedure. On the other hand, negotiation allows parties to listen to each other, communicate openly and come to terms that will provide a win-win situation for both. With this dispute avenue, parties have a higher chance of preserving their business connection.
Choosing the proper dispute resolution method is essential in successfully dealing with business issues. Weighing the pros and cons of each approach can guide you with your decision. If you need clarification on your selections, consulting with an experienced and trusted legal representative can help you.
