Forms Of Dispute Resolution In Business

Forms Of Dispute Resolution In Business

Disputes are always something that can arise at any time during the business process. So what is a business dispute? How to recognize what is a business dispute? When disputes occur, how to resolve them? Learn about the above issue with Apolo Lawyers Law Firm. In case you have problems and need advice or support, please contact us via hotline 0903.419.479 or email contact@apolo.com.vn.

1. What is a business dispute?

According to the provisions of Clause 1, Article 30 of the 2015 Civil Procedure Code, business and commercial disputes are: Disputes arising in business and commercial activities between individuals and organizations with business registration. and all have profit purposes.

Forms Of Dispute Resolution In Business

Thus, a business dispute must have 3 elements:

• Are disputes (contradictions) related to the rights and obligations of the parties;

• Arising from business activities or related to business activities for profit-making purposes;

• Arising between individuals and organizations with business registration, or can be called traders.

2. Characteristics of business disputes

About the subject:

Commercial business relationships can be established between traders or between traders and non-traders. These individuals and organizations must have business registration. Thus, at least one participating party must be a trader.

Besides, there are also some cases where other individuals and organizations can also be the subject of commercial disputes such as: disputes between the company and its members; Disputes between the company and a manager in a limited liability company or a member of the Board of Directors, director, general director in a joint stock company, between members of the company with each other related to the establishment establishment, operation, dissolution, merger, consolidation, division, separation, transfer of company assets, transformation of the companys organizational form.

Forms Of Dispute Resolution In Business

About purpose:

Commercial business disputes must have profit purposes.

It is only necessary to determine the purpose of profit when establishing a commercial business relationship without depending on whether the results are profitable or unprofitable. If its just a consumer loan (or a poverty reduction loan), its a civil dispute.

A dispute arising due to a breach of contract or violation of law, by the parties that harm each others interests, or because one party commits a violation that harms the interests of the other party.

Content of dispute: conflicts such as rights, obligations and interests of the parties in commercial activities. Commercial relationships are essentially property relationships, so the content of the dispute is often directly related to the economic interests of the parties.

3. Forms of dispute resolution

According to the provisions of Article 317 of the 2005 Commercial Law, there are provisions on the following forms of dispute resolution:

• Negotiation between parties.

Negotiation is the first method of resolution in the dispute resolution process. This is a method of resolving disputes through the parties voluntarily discussing, agreeing, settling, and resolving arising disagreements to eliminate disputes without the help or judgment of anyone. any third party.

The negotiation outcome depends entirely on the willingness of each disputing party without any legal mechanism to ensure the enforcement of the parties agreement during the negotiation process.

Forms Of Dispute Resolution In Business

• Mediation between the parties is conducted by an agency, organization or individual chosen by the parties as a mediator

Disputes are resolved by commercial mediation if the parties have a mediation agreement. The parties may agree to resolve disputes through conciliation before, after a dispute occurs or at any time during the dispute resolution process.

Mediation is also preferred by the parties because the procedure is quick, low cost, the parties have the right to decide, and does not affect the cooperative relationship between the parties, reputation, or business secrets. kept confidential. However, the results of mediation are not guaranteed by law and completely depend on the goodwill of the parties.

• Resolve in Arbitration or Court

Commercial arbitration is a method of resolution through the activities of an Arbitrator, who is an independent third party. Only for cases falling under its jurisdiction and receiving requests from the parties will the Arbitrator accept to resolve the dispute. The arbitrators decision is final, there is no appeal or appeal, this is a superior advantage compared to the form of dispute resolution by negotiation and conciliation. The Arbitrators decision forces the parties to respect and implement it. Normally, cases are heard under the principle of closed arbitration to ensure confidentiality.

Court is a method of resolving disputes at a judicial body in the name of state power. The courts ruling is binding and is guaranteed to be enforced by the coercive power of the State. The court only accepts to resolve the case when there is a request from the parties and the dispute falls within the courts jurisdiction.

If you have any difficulties or questions, please contact our company - Apolo Lawyers Law Firm via email: contact@apolo.com.vn or Hotline - 0903.419.479 for advice and support.