How does negotiated solution work?

There are two ways to solve a legal conflict:

1) Others decide the outcome of the conflict

2) The parties decide and control the outcome of the conflict

Advantages of a negotiated solution are:

Mediation or negotiation The parties decide	Trial or arbitration Others decide
Cost is less due to the time required	A trial may take years to be resolved and due to this the cost is higher
There is confidence and the parties learn negotiating abilities	There exists distrust and the parties do not learn negotiating abilities
Power is less decisive in the decision making	Power is manipulated by the parties and their lawyers
The parties involved present their arguments in their own words	With limited information others present the arguments in their own words
The communication between the parties is the foundation to solve the conflict	The communication between the parties is forbidden or discouraged
The parties assume the responsibility of their own decisions	The parties resign to the responsibility of their own decisions. These are taken by the lawyers, judges or arbitrators
The parties determine the solution	The judge or arbitrator imposes the solution
There is a strong commitment due to the active participation in the arrangement	There is no commitment due to the lack of participation in the arrangement
Certainity exists because the parties seek to solve their own problem	Uncertainity exists because the trials establish legal truths
The process is confidential	The process is more or less public
The satisfaction of an agreement reached by both parties diminishes the possibilities of future confrontations regarding the conflict	The discontentment with the sentence or award assures future litigation and costs for appealing sentences or validity of awards

The negotiated solutions are fast and efficient.

Statistically, near 90% of the cases in which the parties of a conflict decide to solve their problem threw a negotiation, the result is satisfactory for both parties.

The great majority of negotiated solutions are carried out by the parties.

See practical examples

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