Arbitration and
Negotiation have become common ways to resolve difficult international business
disputes. What used to seem like intractable situations before are now resolved
with the help of Mediation and other types of alternate dispute resolution. Negotiation and Mediation has been used with
various degrees of success during international ethical conflicts,
labour-management disputes, public-policy disputes or intractable environment
disputes.
Basically, methods
of Alternate Dispute Resolution encourage compromise and which can be a good
way to settle misunderstandings and disagreements. These processes are becoming
more and more popular in India as our global ties are strengthening. It is an
effective way to deal with variety of conflicts that arise and also help
relieve tension from the overburdened court system. Most law firms in Mumbai
are now offering Alternate Dispute Resolution services, however, only few have
the skill for expert negotiation.
Negotiation is a
skill which lawyers have developed in order to explore all potential avenues of
resolving future disputes, including methods which do not involve litigation as
stated above. Negotiation plays a pivotal role in international peacekeeping
efforts by understanding what each party wants and trying to find a workable
legal solution to it. Legal experts are largely spending their time negotiating
effective settlements rather than advising on law. Here is a list of things to
remember while considering negotiation for your business:
What’s your strategy?
Whether you are
doing business internationally or domestically, you have to know what is the
best option according your budget and be sure about meeting your requirements
without including unrealistic terms and conditions. The contracting companies’
main objective is to get more paid customers in order to increase their
revenue, the reason for contract is because both the companies want something
from each other, hence, there is room for negotiation. It helps to be open
about the conditions and clauses that you want as soon as the opposite party
shows their terms, but it’s always a good tactic to not reveal your hand too
early.
Beware of the risks you take.
It may seem pretty
obvious to state here, but make sure you have read and fully understood the terms
and conditions. The last thing you want is to discover hidden costs or
unbreakable clauses too late. It is optimum to incorporate a contract with
transparent pricing policy and teams from both sides should be willing to talk
each other through the contract in order to mutually agree with terms of
payments and services.
If you don’t ask, you don’t get.
A company may be
interested in securing business with you right now, but recurring dealings are
equally important. In the business world, companies do want to build
relationships with clients, which make them more open to negotiation than you
may think. Do not let hesitation let you hold your tongue in such situations;
just ask, you never know, if someone really wants your business, they might be
willing to throw something in for free.
Do not get trapped in a cancellation clause.
There is always a
possibility that an event may occur due to circumstances out of our control due
to which the contract gets cancelled. But when negotiating, one needs to think
how likely it is for that situation to occur. If the cancellation clause has
been laid out to only protect the opposite party, it is time to negotiate in
order to protect both the parties fairly.
Is it the time of the year?
If your contracting
business at the busy time of the year, it is slightly hard to find willing
parties, and ever more harder to negotiate your terms. At such times, promise
to contract again will, in most cases, change their minds for negotiation. Whether
the times are busy or not, companies want to be happy and waiting for business
to arrive at their doorstep, and they will show interest in your concerns and
try to secure relations if not now, then surely for the future.
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