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Negotiation, an effective mode of ADR

The term "negotiation" has a very simple meaning that is to bring an amicable conclusion of a dispute by way of discussion. It can also be defined in the following words: "Negotiation is process that is non binding and has goal of reaching an amicable settlement of a dispute by promoting discussion between the parties." So, Negotiation is a process by which human beings, often referred to as social animals remain integrated and help in managing relationships. Negotiation is a very common human activity which is resorted to at various social institutions. Negotiation takes place between a husband and his wife, buyers and sellers, employers and employees. Negotiation is a fundamental ingredient of a society without which the even the basic communities and families would disintegrate. We might not even be aware of it, but we all are in some sense or other , negotiators. There are negotiations in the family among the family members on a daily basis; communities negotiate among themselves regarding the rules and customs to be followed, buyers and sellers negotiate regarding the price of goods, ministers and politicians negotiate with voters. Negotiation is thus a very basic human activity that exists in several spheres of our lives.

"No dispute is beyond negotiation" is the fundamental principle on which the idea of negotiation rests. Negotiation is the primary mode for resolution of disputes, conflicts, litigation. It could be speedy or might take some time depending upon the party’s will to negotiate, subject matter of dispute etc. But the important advantage of negotiation is that, it is private, very simple and involving no complications and less expensive as compared to other forms of dispute resolution.

Requirements for the process of Negotiation.

 However, the process of negotiation, to be successful should have certain requisites. These are:

(a) The parties in dispute should be co-operative and show interest and participation in communicating, meeting and trying to figure out a settlement.

(b) It would be beneficial for the parties if they make efforts to influence each other.

 (c) The parties must try to act within time constraints and make efforts to get to a settlement as quickly as possible.

(d) The parties must be clear about the issues and must be able to identify and address them

(e) The parties must have faith and realisation that their interests are not totally incompatible.



Parties often prefer Negotiation over litigation as they fear loss of reputation, excessive costs, long delays etc. Negotiation is an effective mode of dispute resolution.

Factors affecting Negotiation

There are some factors on which Negotiation depends. They are:

  1. Interests and goals of the parties;
  2. Nature of relationship between the parties;
  3. History of relation between the parties;
  4. Ability to persuade each other


  • What is Negotiation
  • Requirements for Negotiation
  • Factors affecting Negotiation

BY : Vinayan Singh

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