Question

Sunil and Asha are co-founders of a tech-startup. Recently they had a contractual disagreement with their software vendor regarding the delivery timeline of a critical project. Sunil insisted on filing a lawsuit, whereas Asha suggested resolution by appointing a neutral third party who could facilitate the parties in achieving an acceptable, voluntary agreement. Sunil agreed and their matter was resolved within two weeks.
(i) Identify the method of dispute resolution adopted by Sunil and Asha.
(ii) Give any two advantages of adopting alternate dispute resolution mechanism by the parties.

Hint:

Alternate Dispute Resolution offers quicker, cheaper, and amicable solutions without burdening courts.

Answer 1

(i) Method of dispute resolution adopted: The method adopted is Mediation, where a neutral third party (mediator) helps the disputing parties reach a mutually acceptable voluntary agreement without resorting to litigation.
(ii) Two advantages of Alternate Dispute Resolution (ADR):
Time-saving: ADR methods like mediation are usually faster compared to traditional court litigation, resulting in quicker resolution of disputes.
Cost-effective: It is generally less expensive than filing a lawsuit, as it avoids lengthy court procedures.
Additional advantages (not asked but useful): Privacy and confidentiality are maintained; relationships between parties can be preserved due to cooperative resolution.