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Dispute Resolution for a contract for services of 12 months’ duration for urgently required services. Essay Example

  • Category:
    Law
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    913

What forms of dispute resolution would you propose for a business partnership of 5 people, for a contract for services of 12 months’ duration for urgently required services?

Since the nature of the contract is to provide services, the performance should be constant and continuous. In addition, the duration being only for 12 months, time is essential. Considering the constant requirement of service provision for 12 months, one cannot afford to lose time and resources in a very lengthy DR. Therefore, negotiation would be the best serve the interest of parties in such cases.

Negotiation however, cannot be used to achieve perfect understanding between parties. Nevertheless, it is an ideal tool to resolve disputes in short term contracts involving provision of services. In essence, negotiation is a fundamental tool for managing all forms of disputes in contracts. Negotiation can also be used as a realistic tool to resolve day to day disputes in short term contracts, particularly if the business partners want to protect their business relationship.1

It is impossible to argue with certainty that negotiation would be the best and only solution for DR in this case. However, considering the nature of business, urgency of services, time limitation, low cost and retaining control, it stands out to be the best option. The DR method should also be good enough to maintain good relations between the parties involved. Along this line, negotiation would be a better option than other forms of DR in this case.

In reality, most negotiations involving small businesses have a close relationship with a dispute. This happens either because failure to reach an agreement would result into a dispute, or the negotiation process itself may result into a dispute. As well, it may occur that the negotiation process may flow from a dispute.2

For a business partnership involving five people for a one year contract, the advantage of mediation is that the members can resolve dispute informally through discussions with each other. In addition, such a small number of people can engage in dealing with the problem face to face as they need to find immediate solutions to the issues that face them.3

There are a number of benefits of using negotiation in a case like this one. To begin with, by engaging in direct discussion with the other party, a resolution to a problem can be achieved. However, there might be a lot of uncertainty at the start of the negotiation regarding the exact nature of the outcome. It is therefore very important that the parties lay a good plan for the negotiation exercise. Importantly, the parties have to show commitment to reaching an agreement. In a 12 month partnership business, this can be easily achieved as the partners are aware that there is not much time to lose. In addition, since there are only five partners, they can easily discuss out the burning issues. Along the same line, negotiation is preferred as a means of dispute resolution because the business partners are in a position to resolve any settlement terms as they understand the operations of the business as well as the roles that each one has to play. Hence, the partners have to understand that negotiation is about winning and getting a reasonable outcome that can be honoured.4

Another advantage of using negotiation in a partnership business dispute is that the process is more of a private affair. Since only the business partners are involved in the negotiation process, this form of dispute resolution is more confidential than the other dispute resolution mechanisms. Moreover, since the business partners can iron out the issues on their own, they do not necessarily have to incur costs in the process. As the discussion is between the parties, no costs of bringing in a third party to resolve any form of dispute are involved.5

Another very important thing to mention is the speed with which a negotiation can be done. Unlike other DR mechanisms such as arbitration and litigation, the speed will depend on how fast the partners agree to reach a common ground. Depending on the nature of the business, which in this case is urgently required services, the partners are likely to agree expeditiously to avoid any inconveniences.

In conclusion, although negotiation cannot be wholly relied upon to offer a solution to a dispute in a partnership business, it is viable because of the small number of people involved, the urgency of finding solutions to disputes, and savings in terms of costs of dispute resolution. Further, the whole process is confidential and is therefore suitable for resolving disputes between partners in a short term contract.

References

Jeswald W. Salacuse, The global negotiator: making, managing, and mending deals around the world in the twenty-first century (2003), Palgrave Macmillan, London, 3.

Tom Altobelli, “Negotiation at the small end of town: Some negotiating behaviours of small business,” (2004) 15 ADRJ 16

Richard S. Alembik, “Why consider alternative dispute resolution?”(2004) accessed 18 May 2011, http://www.alembik.com/Stuff/ADR.pdf

“Negotiation” accessed 18 May 2011, http://www.aava.asn.au/uploads/files/13Negotiation.pdf

“Alternative dispute resolution” accessed 18 May 2011, http://demonqueen.multiply.com/journal/item/20

1
Jeswald W. Salacuse, The global negotiator: making, managing, and mending deals around the world in the twenty-first century (2003), Palgrave Macmillan, London, 3.

16ADRJNegotiation at the small end of town: Some negotiating behaviours of small business,” (2004) 15 Tom Altobelli, “2

3
Richard S. Alembik, “Why consider alternative dispute resolution?”(2004) accessed 18 May 2011, <http://www.alembik.com/Stuff/ADR.pdf>

4
“Negotiation” accessed 18 May 2011, <http://www.aava.asn.au/uploads/files/13Negotiation.pdf>

5
“Alternative dispute resolution” accessed 18 May 2011, <http://demonqueen.multiply.com/journal/item/20>