Negotiation

When parties resolve their disagreements through talk rather than appointing a neutral third party, this is referred to as negotiation. It is a kind of dispute resolution method in which the parties try to convince each other to agree to their point of view.

In negotiation, both parties try to pitch their settlement offers and counter offers. The outcome of these proceedings might be beneficial to one party who gets an edge over another. Unlike other ADR methods, negotiation does not require a neutral third party as the parties to a dispute try to reach an agreement by themselves.

It is the most flexible and liberal form of ADR as there are no rules or procedures to be adhered to by the parties. The parties can freely present their offers and persuade the opposite party to accept their offers or settlement. This kind of ADR method is very popular in the corporate arena as business organisations can themselves deal with their opponents and prioritise business interests.