The Power of Conditional and Alternative Offers and Demands in Mediation

9/3/2024

In mediation, traditional demands and offers may not always provide the flexibility needed to prevent negotiations from reaching a stalemate. Introducing conditional and alternative demands or offers can change the dynamics by allowing parties to signal their willingness to negotiate further without committing to a firm dollar amount.

For example, if negotiations stall with a demand of $3 million and an offer of $500,000, the plaintiff might suggest reducing their demand to $2 million if the defendant increases their offer to $1 million. This approach helps maintain the dialogue and explores potential settlement ranges without locking parties into a specific position.

These strategies, often referred to as “conditional demands” or “conditional offers,” enable parties to continue discussions and avoid deadlock. By using these tactics, parties can test the other side’s willingness to negotiate further and find common ground without compromising their positions. Alternative demands or offers, such as giving the defendant a choice between an unconditional demand or a conditional one, can also keep negotiations moving. While these techniques must be used cautiously to prevent misunderstandings, they can be powerful tools for overcoming impasses and reaching a settlement in mediation.

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