Mediation for a Business Separation

Mediation for a Business Separation

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To start with, one must understand the concept of mediation as an alternative for dispute resolution.

Mediation

So, Mediation is a voluntary, client centric and planned negotiation process which is usually assisted by a third party that must be unbiased towards the parties, that is, it must be neutral. The third party is known as the Mediator and his duty is to aid the parties to resolve the dispute amicably with some specialized communication and negotiation techniques. Mediation in quintessence is an assisted negotiation process; it addresses the underlying causes of the dispute along with the legal and factual matters.

Mediation Redhill is a voluntary process. On the other hand, in case of appointments with attorneys they are usually long drawn, however Mediation services are effective and expeditious. These alternatives to litigation save a lot of time as well as money. In addition, one is saved from following lengthy and hectic procedures of the court of law. Confidentiality of the client is of the foremost priority to the mediators.

Advantages of Mediation

  • The parties have control over the mediation in terms of its scope and its outcome.
  • Mediation is participative, the parties can present their own case and can directly participate in the negotiations.
  • The process is voluntary and any party can opt out of it at any stage.
  • The procedure is expedient, efficient and economical.
  • Mediation is informal, confidential and flexible.

Matters for which Mediation may be suitable

Mediation may be predominantly useful when parties have a relationship they want to preserve. So when family members, neighbours or business partners have a clash then mediation can be used as an alternative for dispute redressal.

Business Divorce and Mediation

Business divorce amongst businessmen often occur due to financial attainments or reverses, retirement, internal disputes and the list goes on. Such divorces can be very troublesome, chaotic, expensive and full of risk especially for the ongoing trade and commerce. It is desirable that an agreement regarding the settlement of the dispute is entered into at the very outset of the business relationship, however in the absence of such an agreement parties have to go for other displeasing options such as taking legal action against each other and sometimes even involuntary or forced dissolution. Therefore, to minimize these unwanted options, the conflicting parties that do not have any prior agreement for dispute resolution or how the business separation should take effect should consider the option of mediation as an alternative for dispute redressal. The whole mediation process is confidential as well as informal so it gives a sense of security and no confrontation of the parties is required as the resolution can be discovered through the neutral third party being the mediator.

Factors affecting the quality of Mediation

Three major factors affect the Mediation process as well as the result of such mediation, namely, the timing, selection of the mediator and the groundwork. These factors are of utmost importance for the process.

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