Mediation Procedures for Resolving Commercial Disputes

Mediation procedures for resolving commercial disputes are one of the optimal solutions chosen by traders when disputes arise during commercial activities. Mediation procedures not only help save time and costs but also maintain long-term cooperative relationships between the parties. Let’s explore the mediation procedures for resolving commercial disputes with Long Phan through the article below.

Mediation Procedures for Resolving Commercial Disputes

Common Commercial Disputes

Commercial disputes are primarily disputes arising between traders related to commercial activities. These include disputes related to the sale of goods, the provision of services, investment, trade promotion, and other profit-generating activities. These disputes arise from breaches of contracts and laws during the performance of commitments and often involve significant dispute values, leading to damage to the interests of the involved parties.

Below are some common commercial disputes:

• Disputes arising in business and commercial activities between individuals and organizations with business registration and for-profit purposes, such as contract performance, contract payment, product and service quality, etc.
• Disputes over intellectual property rights and technology transfer between individuals and organizations, all with profit motives.
• Disputes between non-company members who have transactions related to transferring contributed capital with the company and its members.
• Disputes between a company and its members; disputes between a company and its managers in limited liability companies or members of the Board of Directors, directors, or general directors in joint-stock companies; disputes among the members of a company related to the establishment, operation, dissolution, merger, consolidation, division, separation, asset transfer of the company, and changing the form of the company’s organization.

These disputes arise during commercial activities and have significant values. The parties involved need to choose appropriate dispute resolution methods to best protect their rights.

Principles of Mediation for Resolving Commercial Disputes

Commercial mediation is a method of resolving commercial disputes agreed upon by the parties, with a commercial mediator acting as an intermediary to help resolve the dispute. Commercial mediation must also adhere to general principles to ensure the effectiveness of this dispute resolution method. The principles for resolving disputes through commercial mediation include:

1. Voluntary and Equal Rights and Obligations
   • Disputing parties participate in the mediation process voluntarily, meaning they join this process with the desire to resolve the dispute peacefully and without coercion. Additionally, the parties are considered equal in rights and obligations during the mediation process, with no party having more privileges than the other.
2. Confidentiality of Information
   • Information related to the mediation process must be kept confidential, unless there is a written agreement or other legal provisions. The purpose of this principle is to protect the privacy and trust of the participating parties, as well as to ensure the transparency and fairness of the mediation process.
3. Content of Mediation Agreement Must Not Violate Laws and Social Ethics
   • The parties in the mediation process must comply with laws and social ethics. The content of the mediation agreement must not violate legal regulations, be carried out with the intent contrary to social ethics, be used to evade obligations, or harm the interests of third parties.

These principles ensure fairness and transparency in resolving commercial disputes.

Based on the provisions of Article 4 of Decree 22/2017/ND-CP dated February 24, 2017, of the Government on commercial mediation (hereinafter referred to as Decree 22/2017/ND-CP).

Why Resolve Commercial Disputes Through Mediation?

Resolving commercial disputes through mediation has many benefits, especially in a business environment:

• Saving Time and Costs:Mediation is often quicker than taking a case to court. Resolving disputes through mediation helps avoid complex procedures and the high legal costs of a lawsuit.
• Protecting Business Relationships:Mediation helps preserve relationships between the parties by resolving disputes peacefully and consensually. This can help maintain or even strengthen long-term business relationships.
• Flexibility and Creativity:Mediation allows the parties to freely discuss and propose creative solutions, not bound by strict procedural rules like in court. This can lead to more suitable and flexible agreements.

Mediation Procedures for Resolving Commercial Disputes

Documents Required

The documents needed to conduct mediation under commercial mediation procedures include:

• Commercial mediation agreement;
• Commercial contract between the parties;
• Business registration certificate;
• Identity documents of the representatives of the parties (citizen ID, passport, etc.);
• Power of attorney in case of authorized participation in mediation;
• Other documents and evidence proving violations and disputes between the parties.

Procedure

The mediation procedures for resolving commercial disputes the following steps:

Step 1: The parties agree on the procedure, mediator, location, and time for mediation.

• The parties can choose one of the following procedures:
  • Mediation rules of the commercial mediation organization;
  • Self-agreed mediation procedure.

If the parties do not agree on the procedure, the commercial mediator will conduct the mediation according to the procedure deemed appropriate by the mediator.

Step 2: The commercial mediator conducts the mediation according to the agreement of the parties.

• During the mediation process, the commercial mediator has the right to make proposals to resolve the dispute.
• The location and time of mediation are determined according to the agreement of the parties or chosen by the mediator if the parties have no agreement.

Step 3: Conclude the mediation.

• If the mediation is successful, the parties will draft a document on the successful mediation with the following main contents:
  • Basis for conducting mediation;
  • Basic information about the parties;
  • Content of the case;
  • Agreement and implementation plan;
  • Other contents as agreed by the parties.
• If the mediation is unsuccessful, the parties choose one of the following methods:
  • Continue mediation.
  • Request arbitration or court to resolve the dispute according to legal regulations.

Based on the provisions of Articles 12, 13, 14, and 15 of Decree 22/2017/ND-CP.

Mediation Procedures for Resolving Commercial Disputes consulting

Notes on Resolving Commercial Disputes Through  Mediation

The law allows parties flexibility in deciding when to initiate the mediation process. They can choose to resolve disputes through mediation right from the onset of the dispute, after the dispute has escalated, or even at any stage during the resolution process.

Disputes can be resolved through commercial mediation if both parties agree and sign a mediation agreement.

Successful mediation will be documented in writing and will have the same binding legal value as a contract, binding the parties according to civil law. The parties can request the court to recognize and enforce the successful mediation result through civil procedure at the court.

Based on the provisions of Articles 6 and 16 of Decree 22/2017/ND-CP.

Commercial Dispute Mediation Consultation Services

With a team of experienced professionals, Long Phan provides in-depth consultation and support to individuals or businesses when resolving commercial disputes through mediation procedures. This includes the following services:

• Consulting, analyzing, and clearly identifying the issues causing disputes between the parties, including determining the rights and obligations of each party according to the contract or related laws;
• Assisting in negotiations during the negotiation process between the parties to reach a peaceful and fair agreement;
• Consulting, guiding procedures, and preparing documents to request the court to recognize the successful mediation result to ensure the agreement is enforced in practice;
• Drafting and establishing mechanisms to implement the mediation agreement and responsibilities in case of breach;
• Advising on the choice of dispute resolution method if mediation is unsuccessful;
• Advising on the procedures for resolving disputes through the court or arbitration;
• Developing plans, preparing documents, and evidence as a basis for dispute resolution;
• Drafting documents throughout the dispute resolution process;
• Proposing solutions to the ongoing disputed issues.

Commercial dispute mediation consulting

Thus, using Mediation Procedures for Resolving Commercial Disputes is not only an effective method but also a solution to build and strengthen sustainable business relationships between the parties involved. We hope the information provided has partially answered your questions. If you need consultation, please contact Long Phan via Hotline 0906.735.386 for prompt and dedicated support. Thank you very much!