Resolving commercial disputes: Effective methods

Resolving commercial disputes is an important factor that helps maintain stability and development in the business environment. Applying effective methods not only helps stakeholders save time and costs, but also maintains long-term relationships between partners. The article Long Phan provides below will help customers understand more about choosing the appropriate dispute resolution method that will determine the effectiveness and cost of this process.

Trade disputes are common today

Common forms of commercial disputes include contract disputes, intellectual property infringement, unfair competition, disputes between business partners, and issues arising during the course of conducting commercial transactions…..Some common forms of commercial disputes include:

• Disputes on goods purchase and sale contracts;
• Disputes over product and service quality;
• Disputes over intellectual property rights;
• Disputes over commercial payments;
• Disputes over transportation of goods;
• Dispute between company and members.

Methods of resolving commercial disputes

Negotiation and reconciliation

Negotiation and conciliation are the basic dispute resolution methods according to Article 317 of the Law on Commercial 2005. This method allows parties to proactively find common ground. The principles of dispute resolution by commercial mediation are expressed as follows:

• Disputing parties participate in mediation completely voluntarily and are equal in rights and obligations;
• Information related to the conciliation case must be kept confidential, unless the parties agree in writing or the law provides otherwise;
• The content of the conciliation agreement does not violate legal prohibitions, is not contrary to social ethics, is not intended to shirk obligations, and does not violate the rights of third parties.

Advantages of negotiation and mediation method:

• Save time and costs: Out-of-court dispute resolution methods help save time and costs thanks to a quicker and less complicated process than litigation;
• Business information security: Resolving disputes out of court better protects business information, because negotiations and decisions often take place privately and are not made public;
• Maintain long-term cooperation: Methods such as mediation help parties maintain long-term cooperation, creating win-win solutions;
• Flexibility in solutions: These methods allow parties to flexibly tailor solutions to specific needs and situations, optimizing results for both parties.

Commercial Arbitration

Commercial arbitration, according to the Law on Commercial Arbitration 2010, is an increasingly popular method of dispute resolution in the Vietnamese business community. Salient features of commercial arbitration include:

• The judgment has final value: The arbitrator’s decision is final and cannot be appealed, helping to avoid prolongation and uncertainty in the dispute. The judgment is binding and enforceable like a court judgment.
• Procedures are quick and flexible: The arbitration process is simple, fast and flexible, helping to save time and reduce administrative procedures.
• Arbitrators are highly specialized: Arbitrators are experts, with experience and in-depth knowledge of the relevant industry, ensuring fair and accurate decisions.
• Reasonable and transparent costs: Arbitration costs are clear from the beginning, easy to control the budget and are often lower than litigation in court, with no unexpected fees.

People’s Court

The People’s Court is the competent judicial agency to resolve disputes and violations of law in the field of commerce, as stipulated in the Code of Civil Procedure 2015. This is one of the important agencies in the judicial system of the State of Vietnam, exercising judicial power to ensure the legal rights of individuals and organizations in civil relations.

Dispute resolution process by court proceedings:

• Filing a lawsuit: The plaintiff sends a request to the court to resolve the dispute, including information about the parties and specific requests;
• Acceptance and mediation: The court accepts the case and organizes mediation between the parties. If mediation is successful, the court recognizes the parties’ agreement; If unsuccessful, the case continues;
• First instance trial: The court hears and issues a first instance verdict. The parties can appeal if they disagree with the decision;
• Appeal trial (if any): If there is an appeal, the higher court re-hears the case and issues an appeal judgment. This decision is final unless there is a classification appeal.

Some notes for choosing the appropriate dispute resolution method

Businesses need to consider the following factors when choosing a dispute resolution method:

• Dispute value and settlement costs: It is necessary to evaluate the dispute value and related costs (court fees, lawyers, evidence) to decide whether to continue pursuing the case or not;
• Time and urgency: Resolution time can be long, but disputes that need to be resolved urgently (such as protecting property or rights) may require quick resolution;
• Relationships with partners: Disputes with business partners can have long-term effects on cooperative relationships. Parties can choose mediation or negotiation instead of litigation;
• Confidential nature of the dispute: Sensitive disputes (intellectual property, commercial confidentiality) require information to be kept confidential and security measures applied during the resolution process.

Consulting on effective commercial dispute resolution methods at Long Phan

Long Phan is a consulting unit with many years of experience in the field of commercial dispute resolution. Our team of consulting experts regularly participates in resolving complex cases. Professional and effective working method.

Long Phan’s consulting services include:

• Analyze and evaluate the level of dispute and advise customers on choosing the most optimal solution;
• Support in assessing feasibility when choosing dispute resolution methods;
• Support customer representatives in the process of dealing with relevant parties and authorities;
• Support customers in negotiating and negotiating with relevant parties;
• Representing customers to carry out procedures related to commercial dispute resolution.

Resolving commercial disputes requires an understanding of regulations and extensive practical experience. Long Phan will accompany customers in choosing and implementing the most effective dispute resolution plan. Customers can contact us immediately via the hotline: 0906735386 for detailed and timely advice on how to resolve commercial disputes.