*An informal type of Alternative Dispute Resolution*
What *type of disputes can this method be used for?*
Used for *low-key disputes, e.g neighbour disputes and landlord-tenant disputes*
Who are the *parties involved in this method?*
Both *the claimant and defendant and solicitors if any.*
The *aim of negotiation is to win*
Explain the *process of negotiation*
*No rules apply, can take place anywhere and anytime in any form i.e face-to-face, letter etc.*
Negotiation is the *first method of ADR.*
Explain *what happens in relation to the agreement reached.*
*Settlement reached must be in written form so that it is legally binding.*
*Voluntary? Informal?*
*The process is informal (unless solicitor is used) and both parties must choose to negotiate*
Give all the *advantages of Negotiation*
*1. Speed, convenience and cost.*
*2. Lack of formality and flexibility.*
*3. Privacy.*
Explain the *advantage of Speed, Convenience and Cost*
– *Parties can negotiate themselves and at no cost (unless solicitor is used) as the process can take place anywhere, anyhow.*
– *E.g The quicker negotiation starts, the higher the likelihood of a settlement being reached.*
Explain the *advantage of Lack of Formality and Flexibility*
– *Little formality involved in process. Can be done anywhere, anyhow by parties. No rules apply, unlike the Civil Procedure Rules in Litigation.*
– *E.g Settlements such as an apology can be available (unlike litigation). Parties agree to the settlement*
Explain the *advantage of Privacy*
– *Process is kept confidential and private, unlike litigation which takes place in open court / public.*
– *Press can attend litigation, as illustrated by Paul McCartney’s divorce case, whereas negotiation is kept confidential.*
Give all the *disadvantages of Negotiation*
*1. Imbalance of power.*
*2. Lack of Legal Expertise.*
*3. Uncertain Outcome.*
Explain the *disadvantage of Imbalance of Power*
– One party may be *emotionally and financially stronger than the other party, therefore, may make the other party feel intimidated.*
– E.g If the individual is in negotiation with a *large company like ASDA, who have legal help, the individual may feel weaker as there is no public funding for negotiation.*
Explain the disadvantage of *Lack of Legal Expertise*
– If the *settlement is in oral form, it may be difficult to prove.* Also, *the settlement which is reached by both parties may not actually be within the law.*
– E.g The dispute may re-surface later if the settlement is not enforceable.*
Explain the *disadvantage of Uncertain Outcome*
– *Decisions in negotiation is uncertain, unlike litigation where there is a winner or loser.*
– E.g If no decision is reached, parties in negotiation may end up litigating anyways.*
Negotiation A process that occurs when two or more parties decide how to allocate scarce resources. Negotiations in organizations affect relationship between negotiators and how they feel about themselves but are also one-shot economic terms. Read more…
Common Negotiation Philosophies Win-Win, Win-Lose, and Lose-Lose When to Negotiate Competitive Sealed Proposals (RFP), Professional/Consulting Services, Emergency, Proprietary, DIR, TXMAS, State Use Program Types of Information Exchanges Clarification, Communication, Negotiations or Discussions Principled Negotiations People Read more…
Dilemma of honesty How much about your position and motivates you will disclose to the other party. Dilemma of Trust The extent to which you believe you can rely on the other party to be Read more…