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Advantages And Disadvantages Of Dispute Resolution

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INTRODUCTION
Undoubtedly, dispute is something that has been faced by every organizations at some point in time. Conflicts occur and they have to be solved.
Throughout history, people have used a variety of ways to deal with the conflict so as to reach an acceptable agreement. One could reasonably think that business entities would like the dispute to be resolved amicably. However, many business entities involved in million dollars transactions do rely on the established legal system of dispute resolution. A sound and just court system, clear and fair procedural rules and a respected judicial system should ensure that justice is being done. Nevertheless, a good court system may fail to meet the needs of the litigants.
Thus, potential litigants might search for the alternatives to litigation. The alternative mechanisms that exist are negotiation, mediation and arbitration. Arbitration is a formalized mechanism whereby a third party or parties (arbitrator(s)) give an arbitral award which is binding on both dispute parties. The parties have less control in deciding the outcome. However, participants, if work as “joint problem solvers” can reach a mutually agreed agreement, beneficial to them. This can be done either through negotiation or with the help of a neutral third party, the mediator.
Negotiation is the process of discussion whereby the parties to the dispute try to reach a solution. When negotiation bogs down, mediation is then used. In growing numbers, settlements

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