ALTERNATIVE DISPUTE RESOLUTION – CREATING VALUE OUT OF CONFLICT

The paper is deemed to present the advantages of resolving a dispute or a potential dispute throughout negotiation. This alternative of dispute resolution to legal proceedings in front of the law court may be considered as more favorable to the parties in conflict, from an economical perspective. Therefore the scope of the paper herein is eventually to establish that a conflict may generate value by negotiation. Further to the conclusion that by negotiation, a conflict may be solved more efficiently, the objectives of the paper are to identify (i) the role played by the legal counsel in identifying the values thereto and (ii) the mechanisms leading to such effect, as well as (iii) the intrinsic connection between law and economics in an adequate approach of the negotiation throughout a commercial dispute. Not lastly, the paper has as objective identifying the key elements of a settlement agreement that are reflecting the added value.