Is Mediation Necessary For Business Disagreements?

Disagreements between you, your business partners, or customers could land you in court. However, there is a better way to reach an agreement with the other party. Mediation is often used by businesses to settle situations outside of a courtroom setting. If you are involved in a disagreement, here is what you need to know.  

Which Situations Should Be Settled in Mediation?

You and the other party can turn to mediation for a range of disagreements. For instance, contract disputes are often settled in mediation. During the mediation, you are not only given a chance to settle your disagreement, but you can use the experience to make clarifications to your contracts to potentially avoid issues in the future.  

Mediation is also a possibility can also be useful when dealing with government agencies, such as the Internal Revenue Service. One of the benefits of going to mediation is that you have the chance to interact directly with a representative from the agency without the formalities of court.  

Do You Need an Attorney?

Even though the mediation involves you, the other party, and the mediator, an attorney is often still necessary. He or she can serve various functions that can be useful towards reaching a fair settlement with the other party.  

For instance, your attorney could help with finding a mediation. He or she can help find one who is experienced and capable of fairly assessing the situation.  

Your attorney can also help with preparing you for the mediation. Unless you have been to mediation before, the process can sometimes seem confusing, which can impact your ability to fairly negotiate with the other party.  

Most importantly, your attorney can help assess the proposed agreement that you and the other party have reached before the documentation is signed. He or she can help determine if the proposal is fair to you and whether or not changes should be proposed to the other party.  

What If You Cannot Reach an Agreement?

In the event you and the other party are unable to reach an agreement during mediation, you will not be penalized for it. Both parties have the right to walk away from negotiations at any time without it having any bearing on any future legal actions that might be taken.  

If this happens, you still walk away from the process with something. The mediation sessions gave you a chance to hear how the disagreement appears to the other party. As a result, you can shape your future decisions about the disagreement according to that.