Negotiation vs Mediation
Litigation processes are usually long, tiresome, and expensive. In many cases, the judgment given is too late that its value is diminished. Owing to these characteristics of it, people have started preferring the new ways of dispute resolution, namely alternate dispute resolution. This method, includes arbitration, mediation, and negotiation. These days, all commercial contracts have an arbitration clause. Here an arbitrator, call for a meeting listens to both sides and passes an award that has a binding value. Comparatively, mediation and negotiation are more amicable methods to deal with a dispute. As both the processes are less complicated there usually creeps in confusion regarding both of these methods.
In negotiation, the parties by themselves or through their representatives enter into an agreement benefitting both, without the help of any third party. it is usually referred to consult a lawyer so that both the parties are aware of their rights and duties with respect to the dispute involved.
In mediation, it is a process where a third neutral party tries to assist the parties to resolve their disputes by ‘mediating’ a discussion between them. the mediator has to facilitate the discussion fairly, honestly, and impartially by clarifying the underlying concerns of the dispute and making the parties understand each other’s concerns. He is not to provide any legal advice or counseling. Thus, he cannot impose any solution. This process is highly confidential and in the end, the mediator can draft the Memorandum of Agreement MOA, with which the parties can decide to agree or not.
Both of these processes are amicable, less expensive, and less time-consuming. Also, the parties can opt for other resolution methods in case the solution hasn’t been reached yet.