AFM231 Chapter 4: Chapter 4
13 Sep 2015
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Document Summary
Manage disputes with the goal of avoiding time-consuming and expensive litigation, and preserving desirable lt commercial relationships. A range of options for resolving disputes as an alternative to litigation. Process of deliberation and discussion intended to reach a mutually acceptable resolution to a dispute. Most common; cost effective, quick, and allow parties to craft solution without intervention. Except when insurance covers risk (they take charge) Usually between themselves or hire lawyer, advocate, or counselor. Investigate situation determining nature and extent of dispute. Should talk with other party to express concern and assure they are making effort to resolve (say sorry?) Willingness of parties to compromise and negotiate in good faith. Once settled, enter in a settlement agreement or release so it can"t be resurrected or litigated. Also have confidentiality clauses to prevent revealing terms and using settlement for advance claims against party. Usually carried out without involvement of others. Sometimes impasse is reached neither party wants to compromise further.
