When it comes to negotiating contracts, it is very important to be aware of absolutely all your options. This is especially the case when referring to ADRs (alternative dispute resolutions), which practically means they are different options to help you dispute something in contracts. The two very common ADR options are mediation and arbitration. But, negotiation is what people want to try first in order to resolve disputes.
Understanding Global Settlements
The global settlement agreement is an option to take into account when there are some contract issues you have to settle. Usually, this discussion is escalated and is carried out by higher-level personnel. The goal is always to avoid litigation and reach a consensus that is agreeable for both parties involved.
Why Use A Global Settlement?
With a global settlement discussion, parties have a possibility to understand outstanding issues and discuss them in a resolution formal that is informal. Both weaknesses and strengths of the issues are viewed and the big picture is taken into account in order to reach a settlement. Some things that can be resolved through global settlements include:
- There is an impasse when it comes to settling a major issue.
- There are counterclaims that have to be discussed.
- Unsettled claims
- Contract work was finished but there are problems with payments.
Usually, the global settlement is considered when there are interpretations of a contract that have to be discussed. The dispute is launched by one of the parties and several issues can be contested or presented.
Global Settlement Negotiations – Rules
As expected, since we are talking about negotiations, it is obvious there have to be some rules that need to be respected. Attorneys are fully aware of them while business owners usually have no idea what to do. And the rules can vary from one settlement negotiation to the next. Some examples of rules you could expect are:
- Representatives have the power to settle the issues discussed but it is possible to ask for a consultation with someone else before this.
- Attorneys might not be physically present but they usually offer office space.
- Evidence rules that are usually utilized in hearings do not apply.
- Parties have to be ready to prove what they claim with statements.
- Discussions are not recorded. But, those that participate can take notes as long as they are destroyed in a set period after a discussion.
- Documents prepared will not be utilized for anything else in the future.
- A settlement or an offer will not be used for any proceeding in the future.
Such rules can be really fair and will offer a very good protection to everyone involved. And they were proven to be very effective when it comes to global settlement agreements. Based on contractors and many other things, discussions can become very complicated. But, it is often preferred to not include attorneys. They simply make the process more complicated. However, if this is the only way to make the parties negotiate, it is a possibility to take into account. Obviously, every single situation is different and different strategies might be best.
