KICK STARTING MEDIATION
If you are in the midst of a contract dispute that threatens an established business relationship, here is what you need to consider.
- Assuming that you are uncomfortable advocating for yourself, ask the other party whether it will agree to mediation.
- If the other party feels the same way, it may well agree wishing to move forward. And chose a mediator familiar with a background in business.
- Do a ‘cost-benefit’ analysis that calculates two things. First determine the value of your contract including outstanding payments, possible lost future profits, and lost interest. The other party should do the same.
- Next, both of you should calculate your probable future losses that could result from a suspension of dealings.
- Compare the first set of losses with the second and see whether you are pursuing a ‘scorched earth policy’ that is significantly damaging both of your businesses.
- If so, you may decide that compromising your claims makes more sense than prolonging your conflict. Your answer lies in the math.
