Introduction
Before diving into the subject, let’s explore the role of a broker in resolving contract disputes. First, we should know what is a contract?, in a contract, there are two or more parties involved. They prepare a document with the terms and conditions which are agreed upon. We know it as an agreement. The parties make that agreement to protect their legal rights and interests. But sometimes, all those things come differently than containing an agreement, and disputes will arise between them. This situation creates difficulties for the contracting parties to resolve, but the broker can help to short out that critical condition. A broker can resolve the contract dispute in acceptable ways for both parties through contract mediation.
What is a broker?
A broker is an intermediary party who acts to resolve the issue between contracting parties. A broker may be an individual or a firm. When the contract parties face contract disputes, they use broker services to resolve them. In this way, a broker will communicate between the contracting parties through negotiations, advice, and guidelines. They also facilitate the best suggestions for resolving disputes based on the best experience with similar scenarios.
In this way, the parties, by using the help of a broker in the contract dispute, can prevent themself from entering legal battles and resolve it outside the court. The broker provides that service by being compensated in different ways, such as commissions and fees.
The key competence of a broker:
- A broker may be an individual or a firm that acts as an intermediary between the contracting parties.
- Sometimes, a broker plays the role of a firm while acting as an agent for a party and charges the party for providing services.
The help of the broker in contract disputes
Identify the actual issues:
The first step taken by the broker when entering to resolve the contract dispute is to identify the actual issues. He tries to find out the actual source and nature of the dispute. The despite may be factual, legal, or emotional based on some incidents. After identifying the genuine issue, they can focus on the related fact and avoid presuming disputes.
Selecting a proper channel
It is the second step in resolving a contract dispute. After Identifying the genuine issue, the broker chooses the most effective channel for communication between the contracting parties. The choice of the right channel depends upon the disputes which are arising between the parties. In this way, the broker selects the right channel that allows him to express their point clearly. Different ways can select a proper channel of communication, such as making a phone call, videoconferencing, or arranging a direct meeting with the party.
Listen to the parties:
After selecting a proper channel, the broker makes communication with parties. In this way, they first listen to the issue from the party’s side and understand their point regarding the dispute. A broker may ask questions to the parties to clarify doubt and summarize the details provided by the parties.
Negotiate with the parties:
After listening to the party’s point of view and collecting the information related to the contract dispute. A broker tries to negotiate with the party in a fair and acceptable to resolve the dispute. To achieve the resolution goal, they provide different options and alternatives that are satisfactory to the parties.
Documentation of the outcome
It is the last and final step of the dispute resolution process between the contracting parties. A broker prepares a document that contains a detailed summary of how he acts to resolve the dispute. A broker makes documents in written form and describes the details. Such as what kind of issues arise, details of communication and proposals, that offers are accepted by the parties, and what type of action is taken by the parties, etc. They attach the related documents like copies of contracts, receipts, letters emails, and they provide those copies to both parties.
Conclusion
The Brokers play a significant role in resolving contract disputes peacefully and mutually. They provide intermediary services to the client and help them resolve the dispute with a happy ending and without approaching the court. A licensed broker has moral standards and experience compared to a regular broker. As a result, they can effectively resolve the contract dispute and help the contract parties.
