MEDIATION AS AN ALTERNATIVE MEANS TO THE BUSINESS DISPUTE RESOLUTION

Abstract

In business, disputes often arise over contractual relationships when contractual obligations are not properly fulfilled. The potential risk of disputes must always be assessed. Timing and adherence to agreed deadlines are very important in business, as any delay can cause significant damage, and the legal entity can suffer significant losses. In a dispute between business partners, people tend to go to the court and fight there to the fullest rather than reach an amicable settlement, but there is always a winning and losing party in a litigation. From a long-term perspective, it will be impossible for the disputing parties to work together in the future, and the losing party will always feel great resentment towards the winner. Therefore, litigation is not always an attractive option and in this case mediation is a great way to resolve business disputes due to its expediency. Mediation is a dynamic, structured, interactive process which is focused on the needs, rights, and interests of the parties. It also helps to find the optimal solution and encourages open communication. This article presents the possibilities and perspectives of the application of mediation in Lithuania by reviewing global practice.