Table of Contents
As a business owner, you may face a commercial dispute at some point. Business disputes can happen for various reasons, such as a misunderstanding in an agreement about how to move forward with a service or one party believing that another has broken a term in the commercial contract. Although there are different formal methods of commercial dispute resolution, the first action you should take is to try to negotiate with the other party. This can help resolve the dispute quickly and with less time and effort than other options, such as court proceedings. This article will explain three key points about negotiation during a commercial dispute.
This guide outlines how to resolve commercial disputes.
What is Negotiation for Commercial Disputes?
Negotiation for commercial disputes is a form of Alternative Dispute Resolution (ADR). It is when you try to resolve the business dispute with the other party by discussing the issues. You will listen to each other’s opinions and try to acknowledge these in a bid to resolve the problems. Sometimes, an informal third party will be present to help with the discussion. ADR is a crucial way to resolve a business dispute and is often an informal and flexible process.
Key Points About Negotiation for Commercial Disputes
To help you understand negotiation for commercial disputes better, we explain key points below.
1. Listening is Crucial
When you negotiate as a way to try to resolve a business dispute, a key point to note is the importance of listening. As a business owner wishing to resolve the conflict, you may feel it is naturally correct to talk as much as possible about your viewpoint. However, the best commercial negotiators are those who listen and respond to the other party’s argument as a way to move forward and resolve the dispute. This can include asking the other party further questions to understand the issues better.
2. Settlement Negotiations
A type of negotiation you can use when resolving a commercial dispute is settlement negotiation. Settlement is a way to negotiate an agreed solution without going through formal litigation. Usually, a third party, such as a neutral mediator, will facilitate this.
During settlement negotiations, businesses should discuss a settlement on a “without prejudice basis”. This protects the discussions within the negotiation, preventing them from being used if the commercial dispute later goes to court through litigation. Speaking to a legal professional, such as a solicitor, is always advisable before you agree to any commercial dispute settlement.
3. Take Care of Documents
When you negotiate for commercial disputes, understand the importance of documents relating to the dispute. Firstly, keep track of all communication with the other party, as you may need this as evidence to argue your case. If your business involves other staff, you should also inform them of this.
Additionally, be mindful of what documents you present to the other party as part of your case in the commercial dispute. You want to protect your business, so, for example:
- avoid the use of documents which may embarrass your company;
- where documents may be sensitive or confidential, it may be unlawful to show them to the other party; and
- when creating documents as part of the negotiation process, think about how they may sound in court; therefore, write them carefully.
Call 0808 196 8584 for urgent assistance.
Otherwise, complete this form and we will contact you within one business day.
Key Takeaways
If you end up in a business dispute, you may decide to resolve the dispute through negotiation with the other party. Negotiation is where both parties discuss the issues and listen to each other to try to fix them. When negotiating your commercial dispute, listening is a critical aspect. Listening ensures you understand the other party and allows you to move forward to resolve the dispute. Also, be aware of settlement negotiations as an alternative to litigation. Finally, keep a record of all communication with the other party. In the event your dispute reaches a court, you may need to produce evidence of your communication.
If you need help understanding key points about negotiation for commercial disputes, our experienced disputes and litigation solicitors 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.
We appreciate your feedback – your submission has been successfully received.
