A contract is a written agreement that sets out the terms and conditions of the exchange of goods or services between you and another. When a dispute arises, you have options for handling it.
The terms specified in the agreement may dictate how you try and fix it. However, there are a few common avenues available. Get a feel for the options you may have when a grievance pauses a business contract.
How does mediation work?
Mediation is a meeting in the middle, so to speak, with you and the opposing side coming together to compromise. The mediator, a neutral party chosen by agreement or order, tries to get both sides to settle the contract dispute. Even if you compromise during mediation, you still may proceed through court if the mediated agreement falls through.
What is arbitration?
A judge oversees a court of law and makes binding decisions. When you go through arbitration for a contract conflict, the arbitrator acts similarly. Arbitration is often a faster way to get a resolution than court. Much like mediation, you and the other side meet alongside your legal representatives before the arbitrator. After the parties present their respective stance, the arbitrator decides on the record as a judge would. Actions settled in arbitration remain private and cost less than litigation.
Is litigation the last resort?
Filing a lawsuit means asking a judge to hand down an order directing a proper course of action. Going to court is typically a last resort if you and the opposing party cannot come to terms any other way. Depending on what the contract indicates, you may not have the right to go any other route to resolve a dispute.
Getting a contract back on track is your primary goal. However, if that is not possible, you should receive the remedies indicated by the law.
