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In addition to arbitration and litigation, parties involved in various disputes arising from commercial activities may also seek to resolve their differences through negotiation. If the parties do not wish to negotiate or if negotiation fails, they may request the relevant organisation to mediate.

Mediation is a popular way of resolving commercial disputes. Mediation is carried out in private as an alternative to litigation.

Mediation is conducted according to the principle of voluntariness. A mediation agreement must be reached by both parties voluntarily and not forcibly. The content of the mediation agreement may not violate any laws and regulations and the parties concerned should honour the agreement. Where the parties do not wish to resort to mediation, or mediation fails, or any party backs out of the mediation, a lawsuit may be brought to the people’s court.

Content provided by Picture: HKTDC Research
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