Disputes with Business Partners, Here’s How to Settle It Legally!

A business can develop well if there is a healthy working relationship between the business owner and other business partners, be it suppliers, clients or investors. Good cooperation can only be established when you and your business partners have a professional attitude and responsibility to achieve each other’s business goals. For example, you need a supplier to help you supply the company’s stock or needs, and a supplier also needs you to get business income.

the possibility of a dispute in the middle of the road. For example, a supplier is late in sending goods ordered by your company and there is no effort from the supplier to correct his mistakes so that it hinders your business. Of course, this must be addressed immediately, because if you leave it for too long, the problem will greatly affect the sustainability of your business. Below I will explain some tips and how to solve problems with your business partners.

Negotiation

Negotiating is the first way you can do it when there are conflicts and disputes with your business partners. Try to invite your business partners to sit together, discuss, and find joint solutions that can benefit all parties, without any objections or burdens. The negotiation process does not require a third party to mediate, so there is no standard procedure that you must follow. Before negotiating, try to discuss well what you want, and then listen to what concerns your business partner. After the agreement has been obtained, do not forget to document the agreement in an agreement. If you have previously had an agreement, there is no need to make a new agreement, but only need to make an amendment to the agreement which contains a new agreement between you and your business partner. With a written agreement, you can refer to the contents of the agreement or contract that was made when a dispute occurs in the future.

Mediation

Mediation is a method of resolving disputes through the negotiation process with the aim of obtaining agreement between the parties, assisted by a mediator or mediator. The role of the mediator in the mediation process is as a neutral party and is tasked with assisting the disputing parties in the negotiation process to find solutions in resolving disputes without forcing the solution to be implemented.

Mediation can be carried out inside or outside the court. If the dispute is brought to court, then you are still required to go through a mediation process first, in accordance with applicable legal provisions. In the mediation process, the solution or solution suggested by the mediator does not have any legal force and the mediator does not have the authority to determine which party is wrong and right.

Litigation

In the litigation process, the two disputing parties are placed opposite each other. Litigation itself is an ultimum remidium or a last resort if the dispute cannot be resolved with other alternatives. The litigation process itself is carried out in court by presenting all disputing parties to face each other and defend their rights before the Judge. The final result obtained by this method is a decision stating a win-lose solution. Where, the winning party gets what he asks for, while the losing party is obliged to fulfill its obligations to the winning party. However, settlement of disputes in this way is not recommended because it is a long process, and requires a large amount of money if the dispute is allowed to drag on in court.

Arbitration

Arbitration is a way of resolving civil disputes outside the general court based on an arbitration agreement made by the disputing parties. A dispute can be resolved through arbitration if the parties have entered into a written agreement which agrees that if a dispute occurs, the dispute will be resolved through arbitration. In arbitration, you and your business partner can appoint the arbitrator as the party who gives an award in connection with the dispute. Unlike the mediator in the mediation process, the arbitrator has the authority to give decisions on disputes that occur.

However, before being implemented, an arbitration award must be registered with the District Court Clerk so that the execution can be carried out by the District Court if the losing party does not carry out its obligations based on a voluntary arbitration award.

Those are some alternatives that you can choose when there is a dispute with your business partner. In addition, it is better if you consult with a legal consultant before deciding what steps to take. However, before a dispute occurs, you can minimize the occurrence of a dispute by making an agreement, contract or agreement. In which, the contract or agreement can be strong evidence for you in the event of a dispute. Also avoid simply trusting business partners, without a written agreement.

James N. Cline can help you make contracts and agreements that your company needs, ranging from tax law, ensuring the financial security of your business, and also resolving legal disputes you face. James N. Cline also provides FREE consulting services for those of you who are experiencing legal problems in your business. Immediately consult legal issues on your business at Tax Law John Creek GA today!