Difference between Arbitration and Negotiation

 

     Difference between Arbitration and Negotiation

Points

Arbitration

Negotiation

Definition

It is a type of formal dispute resolution process where a third party is involved called as arbitrator to resolve the matter.

It is the simplest form of ADR in which communication between the parties regarding the matter is discussed without any third-party interference with the single aim of reaching a mutually acceptable negotiation.

Nature of the dispute

Generally, the disputes resolved in this way are formal in nature and create a systematic way of proceeding wherein all the guidelines are written to follow.

Generally, these are informal in nature making the parties the decision maker and work according to their will. Involved.

Decision Maker in the matter

The decision-makers in this case are a third party known as an arbitrator. The parties themselves can choose the arbitrator it is upon the organization.

The parties themselves negotiate in the dispute without any third-party involvement. So, the parties are the decision-makers.

Binding or non-binding

The decision of the arbitrator is binding in nature and the parties have to act as if it is passed by the court itself. 

The decision in these disputes is generally not binding and totally depends upon the parties to act upon.  

Speed of the case

Arbitration proceedings can take longer than negotiation, as it involves a formal way of proceeding and takes days to resolve.

Negotiation can be quicker as compared to arbitration as parties can schedule everything at their convenience.

Expense

The Arbitration process can be more expensive as compared to the negotiation process and the parties have to bear the cost of an arbitrator, legal representative, etc. 

Negotiation is less costly than arbitration as the parties themselves resolve the matter.

 

References:

1. Characteristics of Alternate Dispute Resolution (ADR) and Advantages and Disadvantages of Alternate Dispute Resolution (ADR)

 2. Legal Education in India: Challenges, Innovations, and a Vision

3. Sources of Law

4. Salient features of Arbitration and Conciliation Act, 1996.

5. Disscuss the Differences between Arbitration and Conciliation

6. What type of Matter Cannot be subject to ADR (Alternative Dispute Resolution)

7. Discuss the historical background and objectives of the Arbitration and Conciliation Act, 1996

8. What is an Interim Measure by Court Under Section 9 of the Arbitration and Conciliation Act 1996

9. Differences between Arbitration and Mediation

10. Difference between Mediation and Conciliation

11. Difference between Arbitration and Conciliation

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