What is the difference between Negotiation and Arbitration?

Negotiation is the process by which the two concerned parties are attempting to reach an agreement through open discussion whereby both parties utilize persuasive measures to influence each other in coming over to the one side.

Negotiation can sometimes be misconstrued with bargaining; however, with negotiation, a compromise must be made. With bargaining, there is only the possibility of compromise. On the other hand, arbitration is when both parties try but fail to resolve their differences by communicating with each other.

This method offers another solution in which an impartial third party must make the decision. This person could be a retired judge or a lawyer. Arbitration is conducted in the same way as it would occur in a court of law, as both parties are heard, and the judge determines the outcome.

Some people may assume that arbitration and mediation are the same, but actually, these are two different things. When you undergo arbitration, there is someone who will listen to the appeal that is being made and will make a decision based on all the details that have been presented.

For mediation, the lawyer will be in charge of trying to negotiate with a third party so that the case can be lessened or even dismissed. If all of the sides will not agree, the mediation will not be very effective. There should be a conclusion that will make the parties feel that they have achieved what they wanted from the whole thing.