Submitted to Amity University, impartial fulfillment of the

requirement for the Degree in Law

Submitted By: Suhani

Enrollment no : A032134721134

BALLB (General)

Section C

Name of the faculty guide: Manika Gandhi

Introduction
Alternative dispute resolution (ADR), also known as external dispute
resolution (EDR), is basically a method to resolve a dispute outside the court,
i.e., without any interruption from the court. At this point in time, when there
are many cases pending before the court and there are not sufficient judges
and time to resolve them all in court, ADR gained widespread acceptance to
resolve disputes. There are many methods of ADR, like mediation,
arbitration, conciliation and many more.

Negotiation is also a prominent method of ADR. When two or more parties

have different interests and want to come to a mutually acceptable
conclusion, they opt for negotiation as an ADR method.

What is negotiation
Negotiation is derived from the Latin word ‘negotiari’ which means ‘to carry
on business, do business’. Negotiation is very prominent among Indians; we
get to see it from the street while negotiating the price of anything with the
big multinational companies while negotiating deals with them. Negotiation is
defined as self-counseling between the parties to resolve the dispute. In
negotiation, parties, with their own will, by discussing politely and patiently,
try to come up with a solution that is acceptable to both parties regarding
the issue.

Negotiation is a process of discussion and communication between two or

more parties with the aim of reaching an agreement or resolving a dispute. It
involves identifying common interests, exploring potential solutions, and
finding compromises that satisfy all parties involved.

One of the key reasons why negotiation is important is its ability to preserve
relationships. Unlike litigation, which often results in winners and losers,
negotiation allows people to work together towards a resolution that meets
everyone’s needs. This collaborative approach fosters understanding, builds
trust, and maintains positive connections for future interactions.

Moreover, negotiation provides a cost-effective alternative to legal

proceedings. Litigation can be time-consuming, expensive, and emotionally
draining for all parties involved. By engaging in negotiations instead,
individuals can save valuable time and resources while still achieving their
desired outcomes.

Additionally, negotiation promotes creative problem-solving. It encourages

participants to think outside the box and explore innovative solutions that
may not have been considered initially. This flexibility allows for unique
agreements tailored specifically to the needs of those involved.

Negotiation empowers individuals by giving them control over the outcome of

their disputes. Rather than relying on judges or arbitrators to make decisions
on their behalf, negotiators have the opportunity to actively shape the terms
of their agreements.

Characteristics of negotiation
Characteristics of negotiation are:

 Voluntary: This is one of the important characteristics of

negotiation, i.e., it should be completely voluntary, and no party can
be forced to negotiate with the other party. Whichever party wants
to negotiate will send a letter to the other party, asking to
negotiate. If the other party agrees to negotiate without any force
or threat, only then can both parties take further steps to negotiate.
 Bilateral/multilateral: Negotiation can be conducted between two
or more parties, as many as may be required.
 Non adjudicative: Negotiation is a process that includes only
parties to the issue to get a solution amicably and no third neutral
party takes part in the negotiation process.
 Informal: unlike other alternative dispute resolutions, negotiation
is an informal method. There are no rules defined for negotiation;
parties to the issue make their own rules with mutual discussion and
acceptance.
 Flexible: Negotiation totally depends on the choice of parties, i.e.,
where it will take place, when it will take place, what will be the
topic of negotiation, which approach they will take, etc.

Advantages of negotiation
The advantages of negotiation are:

 Negotiation is a flexible process, i.e., it depends on the discretion of

the parties as to whether they want to opt for negotiation to resolve
the issue or not; if yes, where it should be conducted; in how many
meetings the negotiation should be done; and there are no specified
rules for negotiation; parties can conduct it in their own way.
 Unlike other issue resolving processes (e.g., litigation, arbitration,
etc.), it is more likely to come to a conclusion that can be
favourable for both parties.
  It is a voluntary process and can only be opted for with the consent
of each party. It is the discretion of the parties whether they want
to negotiate or not and the decision of any party shouldn’t be forced
or manipulated by the other party.
 Negotiation involves only parties to the issue and there is no
interference from any third party for dispute resolution, which is a
great advantage for the parties who don’t want to involve any
outsiders in the issue.
 Negotiation is the process that only binds the parties to an issue,
unlike other processes (e.g., litigation). For example, in litigation, if
a decision is passed by the court, then it will be taken into
consideration or, as a in further similar cases, but in negotiation,
there’s nothing like that; if somebody gets into a similar dispute
with someone else, then it is not necessary to take their decision
into consideration i.e., they can come to a different conclusion.
 since in negotiations, disputes are resolved amicably, which
enhances the relationship between the parties for future
interactions.
 As negotiation is a voluntary process, there will be no court fees or
other expenses, which makes it a less expensive dispute resolution
process compared to others.
 Evidently, negotiation is a faster process to resolve any dispute, as
there is no interruption by the court or any other third party to keep
giving dates for the hearings to resolve the issue.
 Negotiation is always a good option for any sensitive issue because
this is a very private resolution process that only includes the
parties to the dispute.

Disadvantages of negotiation
The disadvantages of negotiation are:

 If the negotiation is conducted between the unequal parties, then

there are huge chances that the stronger party will get more
benefits as compared to the weaker party, which is morally wrong.
 Where there are benefits to the absence of the third party, there are
also drawbacks. Due to the absence of third party, there are
chances in negotiation that the parties will not come to any
agreement and all the time and money incurred by the parties will
be a waste.
 If one of the parties doesn’t know about their rights, then due to the
absence of this neutral party, there are huge chances that the other
party can take advantage of that party.
  If any party changes its mind, backs off after initiating negotiation,
and withdraws itself from the proceedings of negotiation, then the
amount of time and money invested in the negotiation will become a
waste.

Steps for negotiation

Steps for negotiation are:

 Preparation: Before becoming a part of the negotiation process,

parties need to prepare themselves for what can be the Best
Alternative to a Negotiated Agreement (BATNA) and what can be
the Worst Alternative to a Negotiated Agreement (WATNA). They
also need to decide whether the other party is willing to resolve the
dispute or not.
 Discussion: Before conducting negotiation, setting ground rules for
the negotiation is crucial that what will be the venue of the
negotiation, timings, what will be the approach they want to go with
etc.
 Clarification of goals: Parties to the negotiation should have to
clarify their goals and viewpoints and resolve any
misunderstandings.
 Bargaining and problem solving: this is the most important part
of the negotiation process. Parties to the negotiation share their
points of view, adjust according to the situation and come to a
conclusion that is acceptable to all parties.
 Agreement: after coming to a conclusion, an agreement is made
according to the decided solution of the dispute and then signed by
the parties to the negotiations.
 Implementation: After signing the agreement, parties need to
implement and operate according to the agreement.
 Prepare alternatives: It’s important to consider alternative
options if an agreement cannot be reached through traditional
negotiations. Brainstorm potential alternatives before entering into
negotiations so that you have backup plans ready if needed

Types of negotiation
Types of negotiations are:

 Distributive negotiation: In this type of negotiation, parties

negotiate over one topic, which creates a win-lose situation for the
parties due to which one party will get the advantage.
  Integrative negotiation: In this, parties negotiate over many
topics, which creates chances to get a win-win situation for the
parties and mutual gain.
 Team negotiation: In this type of negotiation, the parties
negotiate in teams.
 Multiparty negotiation: In whichever negotiation there are more
than two parties, that negotiation becomes a multiparty negotiation.

Conclusion
Alternative dispute resolution (ADR) includes many methods to resolve
disputes; one of them is negotiation. When parties to a dispute want to
resolve it amicably, they opt for negotiation. In negotiation, there are high
chances to reach a conclusion that is good for both parties and get
satisfaction with the solution. But sometimes, due to the absence of the third
neutral party, there are chances that either party to the negotiation may not
get a solution or one party will wrongly use its position or any party can back
off at any time. Therefore, negotiation is a great method to resolve disputes,
but