What are the different options for business resolution?
August 10 2022 - When businesses undergo a resolution, itís usually a result of a commercial dispute between two organisations. This is a disagreement between businesses or individuals, which could be due to non-payment of goods, quality of goods, differences in services, inaccurate timeframes, and disagreements over costs. Choosing the type of resolution can be difficult though. Below we explore the different options at your disposal.
Normally, your first steps will be to try and resolve the dispute yourself through calls or meetings. Sometimes, though, this can lead to escalation. In this situation, you should contact commercial litigation lawyers to get advice on your legal position and to guide you through the early stages of the process. By getting legal advice early on, you can ensure that you donít make a mistake that will come back to haunt you.
Alternative dispute resolution methods
There are alternative dispute resolution methods though. These are usually a less expensive and faster way of reaching a resolution, although you might not get the best result that you were hoping for. These are a variety of methods that encourage talking, the exchange of information and a more constructive process. There are different ways of achieving this, but mediation - as discussed below - is an excellent starting point.
Mediations use a neutral third party to control discussions and steer both parties towards an acceptable, amicable solution. One of the main benefits of this process is that it has a high settlement rate - mediations usually produce a result. On top of this, both parties get to control the outcome of the mediation. Action from the outcome can include promissory notes, apologies and the promise of business occurring in the future. Whatís more, you wonít have any concerns about confidentiality, with the neutral party being trusted to keep any information secure.
Settlement offers - if accepted - can also end a business dispute. Thereís no set time to make a settlement offer, it can be made at any moment in proceedings. This could be to avoid a costly or time-consuming court case, or it might come at the end of court proceedings. Court mechanisms mean that making a settlement offer isnít an admission to the determination of issues in the dispute. This means that a rejected settlement offer wonít damage the upcoming court case for your business. Nevertheless, itís worth discussing settlement offers in detail with your lawyers for the best results.
Commercial disputes can be a stressful time for your business. But by following the guide above, you should be all set to pursue a strategy that works best for you and your business.