Negotiation (including Pros & Cons) – COMPLETED!

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Define what is mean by *Negotiation*
*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.*
Categories: Negotiation