Dealing with a business dispute is never the best of experiences. Unfortunately, disagreements between business partners are inevitable. Fortunately, there are a number of ways business partners can resolve emerging disputes. One such method is known as arbitration.
Arbitration is an alternative form of conflict resolution where disputing parties agree to resolve their differences without involving the court. The terms of arbitration are usually defined in the arbitration agreement that is contained in the main contract between the two parties.
Here are some of the reasons why business partners may want to consider arbitration over other forms of dispute resolution.
Saves the business time
As far as business matters go, time is money. However, from filing the paperwork with the court to securing a trial date, dispute resolution through the traditional court process can be extremely time-consuming. And this means a loss of precious business time and possible opportunities. Arbitration, on the other hand, shortens the dispute resolution time in a number of ways. First, it is much easier to obtain the arbitration date. Second, you do not have to worry about the number of cases in front of you. All you need to do is confirm the availability of the arbitrator and schedule your hearing date.
Most often, arbitration tends to cost much less than the traditional court process. This is because the cost of preparing for arbitration is usually lower than that of setting up a jury. Additionally, the attorney fee is usually far less since the process is much faster.
Keeps business’ sensitive matters out of the public eye
Any matter that is brought before the court of law usually ends up in the court’s record where anyone can gain access to it. This can be particularly problematic if sensitive business secrets become available to the public. Arbitration, on the other hand, is a private dispute resolution mechanism, meaning that any information revealed during this process remains confidential.
Conflicts are bound to happen during the course of the business partnership. Find out how a well-thought-out arbitration agreement can help you bury the hatchet and focus on your business partnership.