Third Party System
Imagine you and your friend want to play with your new toy robots. But, you both cannot decide on the rules of the game. So, you both ask your mom to come up with a way to play together.
In this scenario, your friend and you are the two parties, and your mom is the third party who solved the problem. Similarly, in the business world, companies sometimes need middlemen to solve problems between two groups, and that is called a third party system.
A third party system is an external party, organization, or company that helps two or more parties find a solution for their problems or conflicts. These third parties can be individuals or other companies that provide services like arbitration, mediation, or negotiation.
For example, if two companies are having a disagreement about their contracts, they can go to a third party arbitrator to settle the dispute. The arbitrator, who is neutral and unbiased, will listen to both parties, review evidence, and come up with a fair decision that both parties must accept.
In conclusion, a third party system is like your mom who helped you and your friend play with your toy robot fairly. It is a neutral middleman who solves problems and conflicts between two or more parties.
In this scenario, your friend and you are the two parties, and your mom is the third party who solved the problem. Similarly, in the business world, companies sometimes need middlemen to solve problems between two groups, and that is called a third party system.
A third party system is an external party, organization, or company that helps two or more parties find a solution for their problems or conflicts. These third parties can be individuals or other companies that provide services like arbitration, mediation, or negotiation.
For example, if two companies are having a disagreement about their contracts, they can go to a third party arbitrator to settle the dispute. The arbitrator, who is neutral and unbiased, will listen to both parties, review evidence, and come up with a fair decision that both parties must accept.
In conclusion, a third party system is like your mom who helped you and your friend play with your toy robot fairly. It is a neutral middleman who solves problems and conflicts between two or more parties.