Negotiation is a method of dispute settlement whereby the disputing parties will jointly contact, learn, settle, and make concessions to remove disagreements arising to eliminate disputes without the assistance or judgment of any third party. So, what advantages and disadvantages does this method have? Let’s find out about TNTP through the article below.
I.The concept of Negotiation method for dispute resolution
Under Article 317 of the 2005 Commercial Law, negotiation between the parties is one of the forms of commercial dispute settlement, along with other forms such as mediation, arbitration, or court.
Accordingly, it can be understood that negotiation is one of the methods of resolving disputes through the fact that the disputing parties will contact and learn together., mediation, and concessions to resolve disagreements arising to eliminate disputes without the assistance or judgment of any which third-party period. Among the methods of resolving trade disputes, negotiation is considered the most popular and effective method today.
II.Features of the negotiation method of dispute resolution
The method of negotiation for dispute resolution has the following characteristics:
- The disputing parties have known each other, have gone through a process of business and commercial cooperation, and have had binding legal relations. Before the dispute occurred, the parties may have had a negotiation process to reach an agreement. Disputes are possible events that the parties do not want, so it is beneficial to negotiate for the resumption of cooperation. for both
- In case the dispute arises from a contractual relationship, the agreement of the parties depends on the provisions of the contract and related laws. The agreement of the parties is mainly related to the contractual relationship the parties have established and arising The agreement reached by the parties must be by the provisions of the law, and must not violate the prohibitions of the law on the content settlement of that dispute.
- The disputing parties will agree on their own to seek solutions in the spirit of voluntariness, goodwill, and
- If an agreement is reached, the parties usually voluntarily enforce that agreement to resolve the dispute. If the negotiation fails or the negotiation is successful but the two parties do not voluntarily enforce it, the parties may continue to choose other forms of dispute resolution that are suitable for resolving disputes arising between them, such as initiating a lawsuit at a competent dispute settlement agency.
III. Advantages and drawbacks of dispute resolution negotiation method
1. Advantages
The negotiation method of dispute resolution has the following advantages:
- Negotiation is a common form of dispute resolution, which demonstrates the parties’ right to freedom of agreement and disposition.
- This method of resolving disputes is extremely popular among traders because it is simple, and not bound by complicated legal procedures. This method saves time and costs of dispute resolution for the parties. In particular, the bargaining method also does not harm the inherent snobbery between the parties as well as the secrecy and business reputation.
- When participating in the negotiation method, the disputing parties do not need to worry about early disclosure of legal arguments and could control the arguments. His argument and evidence are related to the handicap. Because no individual or organization forces the parties to provide evidence or substantiate their arguments, only the two parties settlement and agreement to find a dispute settlement solution that meets the interests of the parties.
- In many cases, the bargaining method is a “lifesaver” for the breached party when the statute of limitations has expired. Accordingly, through negotiation, the breaching party acknowledges part or all of the obligation that will be the basis for starting to recalculate the time the effect of initiating lawsuits specified at Point a Nuin 1, Article 157 of the Code of Civil Procedure
2.Disadvantages
Negotiation first of all requires goodwill, honesty, and cooperation. The agreement reached in the bargaining method is not enforceable but depends on the willingness of the parties. Therefore, an unwilling party may take advantage of the negotiation method to prolong and delay the fulfillment of obligations. This makes the advantage of the negotiation method, which saves time and costs cannot be achieved if one party does not voluntarily implement the negotiated solution.
Above is the content of the article “Advantages and Disadvantages of dispute resolution negotiation method”. Hope the above TNTP’s sharing is useful for those who are interested in this issue.
Respect.
