Resolution of commercial disputes by mediation is one of the current commercial dispute resolution measures. However, this method has not yet been widely used because the majority of businessmen do not fully grasp the advantages and legal provisions applicable to this method. The habit of resolving the dispute by the court or the arbitration still remains and is preferred over the resolution of commercial disputes by mediation.
The resolution of commercial disputes by mediation is a method of dispute resolution with the participation of a third party as a mediator to support and propose to the parties to the dispute resolution for dispute elimination.
Principles of the resolution of commercial disputes by mediation
The resolution of commercial disputes by mediation must be based on the following principles:
- The parties are involved in the resolution of commercial dispute by mediation completely voluntarily and equally in terms of rights and obligations.
- The resolution of commercial disputes by mediation means that the parties can keep confidential information related to mediation unless the parties agree in writing or otherwise provided by law.
- The contents of the mediation agreement do not violate the prohibitions of the law, are not contrary to social morality, do not aim to evade obligations, do not infringe on the rights of a third party.
Conditions applicable for the resolution of commercial disputes by mediation
In order to enforce the resolution of commercial dispute by mediation, the parties must reach an agreement. The parties to the dispute can reach an agreement before, during, or after the dispute. The agreement can be part of the contract terms or it can be a separate agreement.
Procedures for the resolution of commercial disputes by mediation
- Mediation Rules: The parties have the right to agree on sequence and procedures for commercial dispute resolution or choose the Mediation Rule of the Commercial Mediation organisation to conduct the mediation.
- Number of Conciliators: The parties may agree to choose one or more commercial conciliators to conduct the mediation.
- Location and time of mediation: The parties agree to choose the location and time of the mediation, if there is no agreement, it will be done according to the Conciliator’s choice.
Value of execution of achieved result of mediation
The advantage of the method of the resolution of commercial disputes by mediation is that one of the parties of the dispute has the right to request the Court to acknowledge the successful outcome in mediation. The Court’s decision of acknowledgement of the successful outcome in mediation takes effect immediately, without being appealed or protested according to appellate procedures, and is guaranteed to be enforced in accordance with the law on civil judgment enforcement.
If you have difficulties with related matters of the resolution of commercial disputes by mediation, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specializing in business law in Vietnam that has leading practice areas in the legal market such as Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal and effective service.