What is a Negotiation? Let’s get to know more about this term before settling on an alternative dispute resolution.

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Many of you may already are well aware of the fact that the settlement of disputes does not necessarily always happen in a court. Various disputes can also be settled out-of-court, a method which is otherwise known as Alternative Dispute Resolution. It is a method that can be conducted in several ways. Former Secretary-General of the Administrative Court, Mr. Direkrit Janekrongtham, has previously outlined the Alternative Dispute Resolution method in an article published in the Siam Rath newspaper on June 25, 2015, while he was presiding at that time. He stated that there are 4 methods to alternative dispute resolution; i.e., negotiation, mediation, conciliation, and arbitration. In the article, Mr. Direkrit also mentioned the advantages of alternative dispute resolution, saying, “it is an opportunity for the parties involved who voluntarily apply such a method, to open up frankly talk and find solutions to mutually resolve the issue amicably. It would inevitably create satisfaction for both parties (in the event that they can reach an agreement). Different alternative dispute resolution methods should be suitably applied according to the nature of the dispute”.

Definition of a Negotiation

A negotiation can be defined as the formal exercise of bargaining power to achieve acceptance and agreement to changes of the negotiated proposals or involves both sides sending representatives to collaboratively negotiate on the proposed offers or a meeting for the disputing parties to find a mutual agreement that is acceptable by the parties concerned or a process of reaching mutual decisions which is an alternative dispute resolution method that does not need the help of intermediaries.

Main Features of a Negotiation

A negotiation can be classified into 2 main features;

1. Distributive Negotiation

Refers to negotiations to share joint interests or common rights without any party possessing the sole benefit, such as in cases of a mutual business deal, negotiating an inheritance, or negotiations for joint custody of a child of couples who wish to separate.

2. Integrative Negotiation

Refers to negotiations in which one of the parties possesses the sole benefit or right and needs to find alternate solutions that can respond or find substitutes for the other party. Examples of this type of negotiations include acquiring sole ownership of business shares, sole ownership of a property, etc.

Types of Negotiations

Negotiations can be classified into 4 main types;

1. Diplomatic negotiations

This type of negotiation is highly formal and, in most cases, related to the benefits between countries or of a particular country.

2. Trade negotiations

This type of negotiation concerns international trade matters, or issues between companies, both domestically or globally, or negotiations between the buyer and the seller.

3. Industrial negotiations

This type of negotiation often involves disputes between the employer and the employee. One or more employee(s) may be involved and often concerned about minimum wages and various other welfare benefits that they should be receiving according to the law, etc.

4. Negotiating on the right of ownership or custody.

Negotiation of these rights usually involves disputes between the property owner according to the title deed and those who have illegally encroached on their land, disputes between husband and wife over the custody of their children, or disputes regarding setting up fences on their own properties, etc.

Advantages of negotiating disputes

Security and confidentiality are ensured since disputes are resolved through negotiations between the disputing parties themselves.

When the disputing parties are unable to negotiate or settle the dispute on their own.

In the event that the negotiations between the parties prove to be ineffective or are unable to reach an agreeable conclusion, the parties can forward their dispute to a court of law or apply other types of alternative dispute resolution, such as conciliation or arbitration, where a third party is allowed to help settle the dispute. The parties can find a third person to help settle the dispute by themselves or use services provided by the Thailand Arbitration Center, or THAC, to facilitate in finding a third party to settle the dispute.

For further information, please contact THAC!

What is a Negotiation? Let’s get to know more about this term before settling on an alternative dispute resolution.