The Legal System and the Legal Forms of Business






The Legal System and the Legal Forms of Business


This is a form of ADR (Alternative Dispute Resolution), which is mostly used instead of using the usual court method. In this form, a mediator (third party) helps the parties in question to resolve their conflicts (Dauer, 2004). If the parties involved agree to it, the mediator may express his/her own opinion on what he/she find to be fair or just. The parties may agree to use the suggested method or look for other suggested alternatives. In mediation, a timetable, structures and dynamics are included. This usually lacks in the usual negotiations.

This method of resolving disputes gains the name because of the presence of a mediator through a private and confidential process. However, this form of resolving conflict can only be binding to the parties if it was initially included in the contract. It is also significant that the mediator can be impartial. The mediator must have no interest in either of the parties or the issue at hand, so that it becomes easier for him/her to get through to the parties. The mediators are known to use various techniques in order to make the parties open up or to encourage dialogue.


This is another form of ADR. This involves more than one person. They are known as arbitral tribunal, arbitrators or arbiters. The decision made by this tribunal is known as the “award” and it binds the parties (AAS, 2008). Parties must adhere to this decision. However, the contract must have indicated this initially for this kind of process to bind both parties. What distinguishes this form of ADR from the mediation form is that the tribunal/arbiters have the entire authority of determining the liability and damages payable without consulting the parties on an agreed middle ground.

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