Legal education and How to solve business problems through legal channels

Oct 27, 2022 Law Services

A business can grow well if there is a healthy cooperative bond between the business owner and other business partners, whether suppliers, clients, or investors. Good cooperation can only be established when you and your business partners have reliable behavior and are responsible legal for achieving each other’s business goals. For example, you need suppliers to help you supply stock of goods or industrial needs, and suppliers also need you to earn business income.

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Although at first all the conditions had been agreed upon by the parties, but it did not rule out the possibility of a dispute forming in the middle of the line. For example, the supplier is late in sending your industrial order item and there is no effort from the supplier to correct the mistake so that it limits your business. This matter definitely must be addressed quickly, because if left too long, these problems will greatly affect the sustainability of your business. In this section Libera will provide some tips and methods for dealing with cases with your business partners.

Legal Negotiation

Carrying out negotiations is the initial method that you can use when conflicts and disputes arise with your business partners. Try to invite your business partners to sit together, discuss, and find a common solution that can benefit all parties, without any objections or burdens. The negotiation process does not require a third party as an intermediary, so there are no standard procedures that you must follow. Before carrying out negotiations, try to talk carefully about what you want, and then listen to what your business partners are concerned about. After the convention has been obtained, don’t forget to document the convention in an agreement. If you already have an agreement, then you don’t need to make a new agreement, but only need to make an amendment to the agreement that contains a new convention between you and your business partner. With the existence of a written agreement, you can refer to the contents of the agreement or contract that was made the next day there was a dispute.

Mediation

Mediation is a method of resolving disputes through a negotiation process with the aim of finding a convention between the parties with the assistance of a mediator or mediator. The position of the mediator in the mediation process is as a neutral party and is tasked with helping the disputing parties in the negotiation process to find solutions to resolve disputes without forcing the solution to be carried out.

Mediation can be attempted inside or outside the court. If the dispute is brought to the court of law, then you are always required to go through a mediation process first, in accordance with the mandate of Article 2016 concerning the Mediation Process in the legal assembly. In the mediation process, the solution or solution recommended by the mediator does not have any legal force and the mediator does not have the authority to determine which party is wrong and right.

Litigation

In the litigation process, the two disputing parties are placed on opposite sides. Litigation itself is an ultimum remidium or last resort if the dispute cannot be resolved with other alternatives. The litigation process itself is tried in the legal panel by introducing all disputing parties to face each other and defend their rights before the judge. The final result obtained by this procedure is a verdict that reports a win-lose solution. Where, the winning party gets the thing he requested, on the other hand the losing party must fulfill its obligations to the winning party. However, dispute resolution with this method is not recommended because the process is long, and requires a fairly large fee if this dispute is allowed to drag on in the courts of law.

Arbitration

Arbitration is a method of resolving civil disputes outside of universal courts based on an arbitration agreement made by the disputing parties. A dispute can be resolved through arbitration if the parties have made a written agreement which agrees that if a dispute arises, the dispute will be resolved through arbitration.

In arbitration, you and your business partner can appoint an arbitrator as the party that distributes the verdict related to the dispute. Unlike the mediator in the mediation process, the arbitrator has the authority to issue a verdict on the dispute. There is also sourced from the Articles of Sentences issued by the arbitrators which are final and binding on the parties so that disputes do not drag on and can be implemented quickly. However, before it is implemented, the arbitration verdict must be registered with the Registrar of the State Legal Council so that the execution can be attempted by the State Legal Council if the losing party does not fulfill its obligations based on the voluntary arbitration award.

Those are some of the alternatives that you can choose when there is a dispute with your business partner. Not only that, it is better if you ask a legal consultant before deciding what steps to take. However, before a dispute occurs, you can minimize the formation of a dispute by making an agreement, contract, or agreement. Where, a contract or agreement can be a solid fact for you if something later arises in a dispute. Also stay away from making sure with business partners, without written conventions.