It is common to see business partners having conflicts with each other. Some conflicts get so big that there is no choice left other than taking the whole case to the court, and let the jury decide. However, nobody would do that because there are many matters in the business which are confidential and taking the case to the court means that those matters will be shared with the public audience too. These days many companies are into forced arbitration, which seizes the rights of their employers. Beware of such companies and read through everything before signing any paper. Well, luckily, these days, there are many alternative ways through which you can avoid facing the court and one of them is the arbitration program.
Arbitration agreement is a simple agreement to avoid lawsuits or facing the court when you have a dispute. The parties who have disputes with each other have lawyers in an arbitration program. These lawyers will handle the case on behalf of both parties. The lawyers would exchange information about what happened, where everything went wrong, and gather the witnesses to support the cases. Moreover, each party will be given a proper hearing and all the different aspects of the case will be opened up in detail. At the end of the case, there would be an arbitrator who will make the decision based on the facts presented by both lawyers. The whole process will take place in a conference room, where no one else would be present except the arbitrator, lawyers and both parties.
However, you can’t simply go for arbitration unless and until you don’t have an arbitration agreement signed. With the arbitration agreement, both the parties will agree that any dispute in the future will not be taken to the court and instead be arbitrated in a conference room. Most arbitration agreements are signed at the beginning of a business deal, before any dispute.
Below are some detailed benefits of signing an arbitration agreement for your business.
Faster and Cheap
Those who are familiar with the world of law know that the paperwork there is extremely comprehensive. First you have to pay the regular court fees and then deal with the paperwork. Some lawyers even charge you for filling the paperwork in the court which can be very expensive. In an arbitration agreement, you can save money as there is no court fee or paper filing charges Moreover, the whole process will be much faster as compared to the court proceedings.
When having an arbitration agreement, you won’t have to depend on a jury for the dealing of your case. There is no denial of the fact that a jury can be very helpful, but sometimes it can also be the cause of stress and further disputes. It might be possible that there are some things that you don’t want to disclose in the court, but the jury exposes them, and now further disputes arise. Moreover, it doesn’t make sense that you go to a jury when you can also have the dispute resolved in an arbitration agreement.
Let it be clear that once taken to the court, there would be more disputes and conflicts and they will keep on arising. It might be possible that this increased hostility never fades and the situation becomes so tough that you can’t do business with your partner anymore. However, in an arbitration conference room, the environment is generally much calmer and relaxed. It would be much easier to solve a conflict in such an environment, because an arbitrator will be present there. Both the parties would know that they have no choice other than cooperating with each other and in this way the dispute will eventually settle down automatically.
Another big benefit of having an arbitration agreement is that you don’t have to testify anything in front of the public. No matter what happens, the details of the dispute will not be disclosed to the common public. The meeting will be held in secrecy in an arbitration room, thus respecting your privacy.