Section 62 of ACA : Section 62: Commencement Of Conciliation Proceedings

Explanation using Example

Imagine that Company A and Company B have a dispute over the quality of goods supplied under a contract. Company A, wishing to resolve the dispute without going to court, sends Company B a written invitation to engage in conciliation, mentioning the issue with the supplied goods.

Company B receives the invitation and is interested in an amicable settlement. They send a written acceptance back to Company A. With this acceptance, the conciliation proceedings between Company A and Company B officially commence.

If Company B did not wish to pursue conciliation, they could have simply rejected the invitation, at which point no conciliation proceedings would take place.

Alternatively, if Company B did not respond to Company A's invitation within thirty days, or within the time frame specified in the invitation, Company A could assume that Company B is not interested in conciliating. Company A could then decide to treat the lack of response as a rejection and inform Company B in writing that they consider the invitation to conciliate as declined.