Question

Sunil and Asha are co-founders of a tech-startup. Recently they had a contractual disagreement with their software vendor regarding the delivery timeline of a critical project. Sunil insisted on filing a lawsuit, whereas Asha suggested resolution by appointing a neutral third party who could facilitate the parties in achieving an acceptable, voluntary agreement. Sunil agreed and their matter was resolved within two weeks.
(i) Identify the method of dispute resolution adopted by Sunil and Asha.
(ii) Give any two advantages of adopting alternate dispute resolution mechanism by the parties.

Hint:

Alternate Dispute Resolution offers quicker, cheaper, and amicable solutions without burdening courts.

Answer 1

(i) Dispute Resolution Method: The chosen method is Mediation. In this process, a neutral mediator facilitates an agreement between disputing parties, aiming for a voluntary and mutually acceptable resolution outside of court.
(ii) Two Benefits of Alternative Dispute Resolution (ADR):
Efficiency: ADR methods, such as mediation, expedite dispute resolution compared to conventional court proceedings.
Affordability: ADR is typically more economical than litigation, bypassing prolonged legal processes.
Note: Additional benefits include maintained privacy and confidentiality, and the potential to preserve relationships through collaborative settlement.