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How Can I Negotiate to Resolve My Dispute?

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Business owners will likely face disputes during their business journey, for example, arguments from unhappy customers or suppliers. As a first step, you should try to speak to the other party and negotiate a fair solution. This article will unpack tips for effective negotiation to help resolve your dispute.

How Can Negotiation Help Me?

Disputes can be highly stressful, time-consuming, and costly. Taking a dispute to court should be the very last resort.

Negotiation is a form of alternative dispute resolution alongside other methods, such as arbitration and mediation. Alternative dispute resolution allows parties to try to resolve disputes without going to court.

Negotiation is when two parties involved in a dispute discuss the problem informally and attempt to reach a compromise solution. This route is often preferred to avoid going to court and getting third parties involved in the process.

Some key advantages of negotiation include:

  • the parties in the dispute can save time and money;
  • negotiations are private between the parties involved, and
  • negotiation is often a lot less stressful than going to court.

Negotiation is always recommended as a first step to resolve any dispute. Most well-drafted commercial contracts often state that negotiation must be the first course of action to resolve a conflict.

Tips for Effective Negotiation

Below are some key tips for effective negotiation to help resolve your dispute.

Select a Strong Negotiation Team

Consider which individuals in your business are best placed to negotiate with the other party. Likewise, consider who knows the other party best, is personable and understands the facts about the dispute. 

A strong team does not mean selecting someone to argue your stance aggressively. Rather, it is someone who understands that negotiation involves compromise and carefully listening to the other party’s interests. 

Prepare for Negotiations 

It is critical to understand the background of the dispute and review all information leading up to the dispute before the negotiations begin. It is advisable to spend time considering both sides of the dispute. Know what each side’s arguments are and the strengths and weaknesses of your position. Know your best and worst-case scenarios and what you will be willing to accept.

Further, ensure you have all relevant documents ready, including copies of contracts in dispute and any relevant emails.

Plan out your tactics and strategies for the negotiation. If you choose to seek legal advice on the dispute, take legal advice on your position at the start.

Negotiate Fairly and Try to Compromise 

It is a good idea to start the negotiation process as soon as possible to avoid the dispute escalating. Take proactive steps to clarify any miscommunications and understand the perspective of the other party. Remember that negotiation is not about ‘who wins’ but about reaching a resolution both parties are comfortable with.

There are several different negotiation styles and tactics. However, keep an open mind and work collaboratively with the other party. Compromise is vital for successful negotiations.

Additionally, be firm but amicable. Discuss the points in dispute openly and try hard to find a resolution. Try to be calm and polite, even if you feel disgruntled or upset about the dispute. Likewise, be fair and reasonable. By being transparent and understanding, you could reach a resolution and save your business relationship.

Document Your Outcome

During negotiations, both parties may make offers to resolve the dispute. If you can reach a resolution, ensure you document your agreement.

You may need to enter into a formal written settlement agreement. If so, you should ensure you understand the implications of your settlement. A solicitor can advise you on this if needed.

If negotiations do not achieve a resolution, there are other forms of alternative dispute resolution that you can consider, such as mediation and arbitration. It is always sensible to consider other alternative options before taking the dispute to court.

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Do I Need a Solicitor to Negotiate on My Behalf?

It is possible to handle negotiations informally without the help of a solicitor.

Depending on the complexity, risk and value of the dispute, you may seek support from a solicitor specialising in dispute resolution.

A solicitor can help in various ways, for example by:

  • advising you on your options and the relevant legal issues;
  • presenting the strengths and weaknesses of your position;
  • helping you understand the level of risk involved;  and
  • drafting and negotiating required legal documentation, such as a settlement agreement. This is often where a lawyer can add real value and spot issues you may miss.
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Key Takeaways

Negotiation is a low-cost and informal form of dispute resolution, allowing parties to resolve disputes through discussion and compromise. It is often the first course of action to consider when a dispute arises to avoid costly litigation in court. There are various ways businesses can achieve effective negotiations – through planning, being reasonable and compromising.

If you need help resolving a commercial dispute, our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions

What is negotiation?

Negotiation is an informal process for resolving disputes. Negotiation involves both parties to a dispute discussing the problem and attempting to reach a compromise position.

Do I need a solicitor to negotiate my dispute?

You do not need a solicitor to negotiate a dispute on your behalf. You can negotiate yourself. However, consider involving a solicitor when your dispute is particularly complex or high value.

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Aneela Ahmed

Aneela Ahmed

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