Since the nature of the contract is to provide services, the performance should be constant and continuous. In addition, the duration being only for 12 months, time is essential. Considering the constant requirement of service provision for 12 months, one cannot afford to lose time and resources in a very lengthy Dispute Resolution (DR) exercise. Therefore, negotiation would be the best to serve the interest of parties in such cases.
Negotiation however, cannot be used to achieve perfect understanding between differing parties. Nevertheless, it is an ideal tool to resolve disputes in short term contracts involving provision of services. In essence, negotiation is a fundamental tool for managing all forms of disputes in contracts. Negotiation can also be used as a realistic tool to resolve day to day disputes in short term contracts, particularly if the business partners want to protect their business relationship.
It is impossible to argue with certainty that negotiation would be the best and only solution for DR in this case. However, considering the nature of business, urgency of services, time limitation, low cost and retain control negotiation could be the best option. It should also maintain good relations between parties. Therefore, negotiation would be better option than other forms of DR in this case.
Thus with reference to this model, one has to appreciate how negotiations are formed, conducted and concluded. Negotiations are mainly in the form of a dialogue between the parties with the intention of reaching an understanding where the parties have differing opinions. To this end, since the envisaged contract is between five parties, the reliance on negotiations would be of great benefit for their continued relationship for the year long relationship.
For this to be manifested one has to come up with the best negotiation strategy. The competitive model would be ideal where the five were in a competitive deal. The model as Murray points out is however not appropriate where the five would be in a quantum meruit basis as it advocates for the parties to the negotiation to compete for the highest benefits. This could thus lead to acrimony for the parties. Bearing in mind the duration of the contract thus, the short period the contract is meant to last would not be favourable for such competition to arise as it would consume much of the time that would be vital for the continued business.
On the other hand, another alternative is the problem-solving negotiation model which has a great difference to the competitive model. This model is known for benefiting all parties creating a win-win situation for all parties. These are however different from soft negotiations as the latter has an effect of one giving in to the demands of the other party. The soft negotiations would thus be highly inappropriate in this situation as the parties would take advantage to the one employing the...