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Before negotiating a business dispute: how to prepare options for resolving it

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Before negotiating a business dispute: how to prepare options for resolving it

Start with what you want to happen after the negotiation

When a business is in a dispute, preparation should not consist only of the amount you want to claim or an explanation of who is at fault. Try to write down clearly whether you want your money back, the work corrected, your property returned, or an orderly, step-by-step end to the relationship. Different goals mean that the suitable options will differ as well.

This article suggests a way to organize the issues so that you can consult a lawyer and prepare for negotiation. It does not determine the rights of the parties to the dispute, nor does it guarantee that an agreement will be reached. Information on the courts’ mediation channels is available separately for you to study, so arranging to talk things over among yourselves should not be treated as the same step as a court process.

Separate the agreed facts from the matters still in dispute

Write down briefly what the parties agree on and where they still differ. For example, they may accept that work was delivered but disagree on whether all of it was delivered or whether its quality was acceptable. For each issue, note the information needed to answer it and what is still unknown. This helps keep the conversation from circling back to arguing over every event at once.

Use language that describes things that can be verified, and keep feelings or assumptions separate from information that has been confirmed. If some of the figures are still being checked, show clearly which parts can be calculated and which are not yet settled. Do not change the information to make it look more certain than it is in order to give your proposal more weight.

Prepare more than one realistic option

Try grouping your options into packages, such as partial payment together with correction of the remaining work, or return of the items together with ending the work, and have a lawyer check whether each package is appropriate in light of the contract and the facts. Do not offer anything that your organization has no authority to do, or cannot actually do, merely to keep the talks going.

As a hypothetical example, a business needs to be able to use the outstanding work by a deadline, so it may place more importance on who will be responsible for the corrections and how the work will be inspected than on a price reduction alone. But if there is no real capacity to continue the work, the same option may not meet the need. Note down in advance the assumptions behind each package and what needs to be confirmed.

Check who has decision-making authority and what internal limits apply

Before the meeting, check who will attend to provide information, who will negotiate, and who has the authority to approve matters or bind the organization. If approval is needed from the board, co-owners, or anyone else, arrange the timing and documents in advance. Do not make commitments on behalf of everyone involved before you know the scope of authority.

Set out which matters the representative may decide, which must be brought back for discussion, and what information needs further checking. Safeguard your internal reasoning and limits as appropriate. Preparing in this way helps reduce confusion between proposals made for discussion and statements that may have a binding effect, which a lawyer should review in light of the actual context.

Compare the practical details, not just the headline figure

When a proposal is made, ask who will do what, by when, how delivery or payment will be made, and what evidence will show that everything has been done. If it is split into installments or several stages, you need to see how each stage relates to the others, along with the issue of costs and anything still outstanding.

Do not rush to sign any wording that waives rights, acknowledges a debt, or ends a claim if you do not yet understand it. Have your adviser check whether the draft reflects what was actually agreed and which rights it affects. Negotiating privately does not make the time limits in a case go away, so check deadlines with your lawyer separately from the meeting schedule.

Close the meeting with a shared understanding of where things stand

Record which matters are only proposals, which are awaiting checks, and which need documents to be prepared next. If you still cannot reach agreement, set out the additional information needed and who will coordinate the next step. Do not conclude that the dispute is over on the basis of a conversation that did not reach a clear resolution.

The Office of the Judiciary provides information on, and channels for, mediation before a lawsuit is filed. The news item cited here is information originally published in 2023, not today’s news. If you want to use a particular process, check its conditions with the agency or a lawyer first. B Law Firm can serve as an avenue for consultation, within the scope of the legal services the firm has published, to assess the specific issues in your dispute.

Concept image comparing options on timing and correcting the work before reviewing an agreement

Illustration created with AI

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