Question

Edward Sour owns and leases a building where Crazy Coco manufactures and sells various candies. Crazy Coco signed a 4-year lease at a fixed monthly lease fee. Mr. Sour believes Crazy Coco has violated the terms of the lease and sends a demand letter stating that he is terminating the lease unless Crazy Coco agrees to an immediate 20% increase in its monthly lease payments. What methods for resolving this dispute are available to the parties? What are the ramifications of pursuing each different method? Which method do you believe is to the greatest advantage of both parties? Why?

Answer 1

Explanation:

Some of the methods which are available for solving this case are;

1. arbitration
2. mediation
3. collaborative law.

The ramification of the use of mediation is that it may not solve the dispute completely since the mediator will demand payment which no party will be willing to offer. Similarly, when solving family issues such as divorce, collaborative law is best applied, and therefore does not yield the desired result.

The best way to settle the dispute is by using arbitration procedure where a neutral arbitrator listens to all sides and offers a decision on the basis of the findings. Arbitration is the best method because it helps to resolve disputes arising from contract agreements. This is the best method since it is always used to resolve contract disputes and the arbitrator is a volunteer who does not claim any payment and therefore the parties concerned do not have to spend any penny on the service.