Is a process during which two parties who are involved in a commercial dispute mutually arrange to either negotiate or appoint a third party to provide an independent decision with the general aim of avoiding litigation through the Courts which is traditionally viewed as being more time consuming than ADR.
ADR is utilized in three forms namely;
Direct negotiations: During direct negotiations, the use of a third party is optional with regards to elucidating the demands of each respective party. In this respect, an Attorney may be appointed to communicate such demands that a party may wish to express to the other.
Intermediation: is an advanced stage of ADR and specifically requires a third party named the Intermediary to facilitate the negotiation between the Parties, suggest alternative solutions and eventually aim to reach a settlement between both Parties to the dispute.
Arbitration: Is the final stage of ADR process and requires the greatest degree of diligence by the legal representatives of the Parties with respect to the preparation of their legal arguments which each party intends to rely upon and present before an impartial Arbitration Committee. Contracting Parties may agree to refer a dispute to an Arbitration Committee who would be mutually appointed by the Parties themselves. Arbitration judgments may not be appealed but need to be approved by the Courts in order to be legally binding upon the parties and it is, therefore, the approval of the Courts that may be appealed by the respective Party to the Arbitration judgment.