Negotiation Disadvantages

• Imbalance of Power

  One party is usually weaker than the other, whether financially or emotionally. For example, an individual who takes on a multi-national company such as Asda; the company will have vast financial and legal help whereas the individual will not. There is no public funding for negotiation and an individual is unlikely to present their case as well as a company with legal representation.
• Lack of predictability

  It is not bound by the strict rules of judicial precedent so does not have to follow decisions from previous cases. As a result it is impossible to accurately predict the outcome of negotiation and there is also no certainty that a settlement will even be reached. This combined with a lack of formal procedures within negotiation means that there is no consistent approach and justice for all as each dispute Is dealt with individually.
• Lack of Legal Expertise

  Parties may reach a verbal rather than a written agreement and there could be confusion, at a later date, as to exactly what was agreed. Also, the parties may negotiate a settlement that suits their needs but is not within the law and if it is not enforceable, the dispute may end up in court.
• Not Legally Binding

  Not legally binding unless written down which means that if the parties concerned fail to honour a settlement reached they may end up in court anyway. This can add a considerable amount of time onto the length of the process. Many people would prefer to go straight to litigation in the knowledge that the court will give an enforceable judgement and avoid any upset or confusion.