Arbitration is avoidable by taking certain steps.
Arbitration is a type of dispute resolution which resolves a conflict between parties in front of an arbitrator. It is a more informal proceeding than a lawsuit before a judge but can be expensive. Arbitration claims arise after two or more parties have entered into a contract to provide goods or perform services with each other and expectations or requirements are not met in the eyes of one or both of the parties. Resolving the parties' disputes is best avoided before the contract is entered into by taking some important steps.
Instructions
1. Have a clear understanding of the bases for information provided to you from the other party you are dealing with. Making assumptions or misunderstanding data the other side uses for entering into a deal with you can lead to contention, failure and arbitration in the future.
2. Ensure that your agreement is in writing and that the agreed upon terms are clear and precise. Ambiguities in your written contract will increase the likelihood that you'll end up in arbitration if one party becomes dissatisfied with the actions of the other.
3. Educate your partners, employees and other staff on the terms and conditions of the agreement between you and the other party. The better they understand your agreement the more they can help you complete your side of the bargain.
4. Be prepared to compromise and give something up. Parties who are unwilling to bend on any issue in dispute are more likely to find themselves in front of an arbitrator.
5. Consider mediation. Mediation is a voluntary meeting in front of an impartial mediator. The mediator works with both sides of the dispute in an attempt to find a suitable resolution. The mediation process is generally faster and cheaper than both litigation and arbitration.
