Informal resolution of disputes: Overview, definition, and example
What is informal resolution of disputes?
Informal resolution of disputes refers to the process of settling conflicts or disagreements outside of formal legal proceedings, such as court trials or arbitration. This approach typically involves direct negotiations or alternative methods, such as mediation or conciliation, where the parties involved work together to find a mutually acceptable solution. Informal dispute resolution is often quicker, less costly, and more flexible than formal methods, allowing the parties to retain greater control over the outcome.
In informal resolution, there is generally no need for legal representation or a third-party decision-maker unless mediation or another form of assistance is required. The goal is to resolve the issue amicably and efficiently without the need for extensive legal procedures.
Why is informal resolution of disputes important?
Informal resolution of disputes is important because it provides an alternative to the often time-consuming, expensive, and adversarial process of going to court. It encourages collaboration and communication between parties, which can help preserve relationships and result in more satisfying and sustainable outcomes for all involved.
This type of resolution can be particularly beneficial in business contexts, family disputes, or workplace conflicts, where maintaining a cooperative environment is crucial. Informal methods can also be more accessible, as they typically do not require formal legal knowledge or costly fees.
Understanding informal resolution of disputes through an example
Imagine two business partners who have a disagreement over the terms of a contract. Rather than taking the issue to court, they decide to engage in an informal resolution process. The partners meet and discuss their concerns, with one partner proposing a revision to the terms of the agreement that both can live with. They are able to reach a compromise without needing a judge or third-party intervention.
If the partners are unable to resolve the issue themselves, they might agree to bring in a neutral mediator, who helps facilitate the discussion and encourages both sides to find common ground. After a few sessions, the partners reach an agreement, resolving the dispute without the need for formal litigation.
Example of an informal resolution of disputes clause
Here’s an example of how an informal resolution of disputes clause might appear in a contract:
"In the event of any dispute, claim, or disagreement arising out of or related to this Agreement, the Parties agree to first attempt to resolve the issue through informal negotiations. If the dispute cannot be resolved through informal discussions, the Parties may agree to engage in mediation before pursuing other legal remedies. The costs of mediation shall be shared equally between the Parties."
Conclusion
Informal resolution of disputes is an effective and accessible way to address conflicts outside of the formal legal system. By encouraging open communication and cooperative problem-solving, this approach can save time, money, and stress, while preserving relationships between parties. Whether through negotiation, mediation, or conciliation, informal dispute resolution offers a flexible alternative that can lead to more amicable and sustainable outcomes for all involved.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.