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Dispute Resolution Law


The transitional system employs a number of dispute resolution techniques, including negotiation, mediation, conciliation, arbitration, and judicial settlement. These approaches are characterised as “alternative conflict resolution” on a domestic level since they are viewed as a supplement, despite the fact that they are highly preferred for dispute resolution on an international level.

The adjudicative and diplomatic modes of settlement

The adjudicative and diplomatic modes of settlement are the two further divisions of this system. The use of adjudicative techniques entails a neutral third party who decides the case by rendering a judgement that is binding on both parties. In contrast, some of them under the diplomatic form of dispute resolution include a third party, and the outcomes are always non-binding.
There are two types of adjudicative dispute resolution: judicial settlement and arbitration. Judicial settlement is a legally-binding form of decision, which is issued by an unbiased, formal, and permanent tribunal. Yet, due to a number of drawbacks, alternative conflict resolution methods are preferred over judicial resolution of international business issues. A neutral third party issues a binding ruling in arbitration, making it an adjudicative method of resolving disputes.

The disagreement is resolved through compromise between the parties through diplomatic or political dispute resolution, and the final agreement has a non-binding nature. Diplomatic agreements often fall into two categories: negotiations and consultations. The involvement of a third party in diplomatic conflict resolution is the next step. Good Offices, enquiry, mediation, and conciliation are some of the several third-party implication techniques.

A neutral third party, the conciliator, assists the parties in conciliating their disagreement through the negotiating process of conciliation.

Conciliation on a global scale

The diplomatic mode of dispute settlement, also referred to as international conciliation, is described as an intervention made by a body without political authority in a dispute settlement process with the parties’ trust that the body has the power to look into all the details of the dispute and to offer a solution that is not legally binding on the parties. The following are the fundamental elements of the conciliation process: (1) The parties’ confidence in the conciliator is required. (2) The conciliator must look at all aspects of the disagreement, including the facts and how the law is being applied as well as the non-judicial components. (3) The conciliator’s suggestions do not have to be only based on how the law is being applied. The decision made by the conciliator is not binding on the parties involved, and the pertinent legal principles may be additional grounds or not present at all.

Conciliation is an option for resolving conflicts involving “nonarbitrary” or “non-justifiable” situations, and it is typically unaffected by the jurisdictional issue. It is also employed in situations when applicable legal authorities are being used because the parties to a dispute may want to lessen the blow and take a conciliatory approach that will put an emphasis on finding a fair resolution. The idea of conciliation is similar to and descended from mediation in that both processes include the use of third parties to reach non-binding agreements through dialogue with the parties involved. In a more casual setting like mediation, the mediator only uses the information that the parties supply to make decisions. Comparatively, the framework and process of conciliation are more formal. The primary responsibility of the conciliator is to provide a peaceful resolution of the conflict through communication with the parties, through formal proceedings, and by providing written proposals for doing so.

Conciliation may be used in two different contexts

The conciliation provision may be added by the parties to a treaty or contract to address any potential future disputes. The parties may also decide to end the conciliation agreement, which will aid in settling the conflict that has occurred.

The nomination of the conciliator kicks off the conciliation procedure. The conciliator will next decide any regulations that the parties have contended should be observed during the conciliation process. The oral and written submissions from the agents of the parties will be submitted before the conciliator begins the investigation into the facts and the law. The conciliator will work to encourage a peaceful resolution of the conflict, and he will document his recommendations in a report that he gives the disputants. All parties must get a copy of the plan because it is not binding, allowing them to determine whether or not to adopt the recommendations. The conciliator will draught a statement stating that the conciliation was successful and outlining the parameters of the agreement if the disputants agree to accept the recommendations. When either party rejects the recommendations, it will be noted in the document that the conciliation was dissolved because the parties were unable to agree on the recommendations. Unless the parties agree otherwise, the whole conciliation process and written record are kept confidential, unlike judicial resolution.

Conciliation as a method of dispute resolution

Conciliation has been used in the inter-state business dispute to settle the conflict between the contractual parties inside any multilateral treaty framework. Also, it has been added into bilateral agreements that deal with trade or investment between two parties on one another’s land. International business contracting parties have the option to include conciliation clauses in their contracts. Conciliation in the context of international economics might be set up using the conventional format or in different ways. There are also other instances where the parties to a disagreement favour adjudicative, binding methods of resolving their differences. Nonetheless, some people today advocate for using conciliation and other non-binding modes of resolution more frequently.

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Hamid Bagherzadeh

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    Frequently Asked Questions

    Conciliation is another form of alternative dispute resolution that is similar to mediation. In conciliation, a neutral third party, the conciliator, assists the parties in reaching a settlement by facilitating communication and negotiation. The conciliator may also provide suggestions for resolving the dispute, but unlike an arbitrator, they do not have the power to impose a decision.
    The use of conciliation as a form of alternative dispute resolution varies in different countries. In the UK, conciliation is commonly used in employment disputes, where the conciliator works for the Advisory, Conciliation and Arbitration Service (ACAS). In China, conciliation is often used as a form of dispute resolution in civil and commercial cases, but it is not as commonly used as mediation. In Brazil, conciliation is also used in civil and commercial disputes, but it is not as popular as mediation or arbitration.
    Compared to arbitration and mediation, conciliation is often seen as a more informal process, as there is usually no formal hearing or evidence presented. It is also less adversarial than arbitration, as the parties work together to reach a settlement. However, like mediation, conciliation is a voluntary process and the conciliator does not have the power to impose a decision on the parties.
    For international entrepreneurs and businessmen in the UK, China, or Brazil, the suitability of conciliation as a form of alternative dispute resolution will depend on the nature of the dispute and the desired outcome. If the parties want to preserve their relationship and are open to negotiation, conciliation may be a suitable option. However, if the dispute is complex or involves a significant amount of money, arbitration may be a better option for a binding decision. Mediation may also be a suitable option if the parties want to maintain control over the outcome and are willing to cooperate to find a solution.

    The legal frameworks governing conciliation in the UK, China, and Brazil are as follows:

    In the UK, the Advisory, Conciliation and Arbitration Service (ACAS) provides conciliation services for employment disputes. ACAS is an independent body that helps employers and employees resolve disputes through a range of services, including conciliation. The process is voluntary, and there is no legal requirement to use ACAS, but it is often recommended before taking legal action. The ACAS Code of Practice on Disciplinary and Grievance Procedures sets out guidelines for the use of conciliation in employment disputes.

    In China, conciliation is governed by the Civil Procedure Law, which provides for the use of conciliation in civil and commercial disputes. The law encourages parties to settle disputes through conciliation and provides for the use of a court-appointed conciliator. In addition, there are specific regulations that apply to the use of conciliation in labor disputes.

    In Brazil, conciliation is governed by the Brazilian Civil Procedure Code, which provides for the use of conciliation in civil disputes. The Code encourages parties to resolve disputes through conciliation and provides for the use of a court-appointed conciliator. There are also specific regulations that apply to the use of conciliation in labor and family disputes.

    In all three countries, the legal frameworks for conciliation are designed to encourage parties to resolve disputes without the need for litigation. The use of conciliation is voluntary, and the parties must agree to participate in the process. The conciliator is typically a neutral third party who facilitates communication between the parties and helps them reach a mutually acceptable solution. The terms of any settlement reached through conciliation are generally binding on the parties, although they may not have the force of law.


    Conciliation is a dispute resolution mechanism that involves the intervention of a neutral third-party (conciliator) to facilitate a resolution between disputing parties. Here are some potential benefits and limitations of conciliation:


    Informal process: Conciliation is typically a less formal process compared to traditional legal proceedings, making it more accessible, less intimidating, and less expensive.

    Confidentiality: The proceedings of conciliation are confidential, which means that parties can freely express their views without fear of public disclosure.

    Voluntary participation: Participation in conciliation is voluntary, which means that parties have control over the outcome and can withdraw from the process at any time.

    Preservation of relationship: Since conciliation aims to facilitate an agreement that is mutually acceptable to both parties, there is a higher likelihood of preserving relationships between them.

    Time-efficient: The conciliation process can be completed relatively quickly compared to other dispute resolution mechanisms like litigation, which can often take years.