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Michael Davis
Content Director

When you sign a contract with someone, chances are you think you have an understanding with them. The whole point of a contract is to make sure each party knows what is expected of them and what they can expect from anyone else who signs the contract. Still, contracts are often breached, and when they are you will have several options for resolving a contract dispute. The best option will depend on your particular circumstances.

Mediation

When there is a dispute over a contract violation, the parties involved will often hire a mediator to help them resolve the issue. A mediator is an objective third party. A mediator is generally a person who is trained in conflict resolution, such as a former judge or an attorney. 

The use of a mediator is often a good option because it can keep emotions out of an argument. They will generally listen to both parties and then restate what each person has said in a way that is easier for both parties to understand.

The mediator makes no judgments in a situation. Instead, they help the parties involved in a conflict to see the other side of an argument and reach a conclusion. The mediation may result in a new contract being written. If the contract that is agreed upon in mediation is violated, the breach is likely to be settled in court.

Attorney Negotiations

Sometimes parties who have a contract dispute will simply have a meeting where they are each accompanied by their attorneys to resolve an issue. The attorneys can advise their clients of their legal rights and their contractual obligations. 

The goal of the negotiation is to come to a conflict resolution without going to court. In addition to avoiding the time and expense of a trial, these negotiations are confidential. This is generally beneficial to a company because a trial is often a matter of public record and confidential business matters may be discussed. 

The parties will discuss any ambiguities in the contract and they may rewrite portions of a contract that were previously unclear. 

Arbitration 

Arbitration is employed by many companies as an alternative to going to court. Some companies will ask their employees or contractors to sign an arbitration agreement as a condition of employment.

An arbitration is similar to a trial in that the two parties will present their arguments to an arbitrator and the arbitrator will decide which party is right or wrong in the case. The decision of the arbitrator is legally binding. 

Arbitrations are less restrictive than court cases in terms of the evidence presented. Both sides may call witnesses, but they will not be able to subpoena records as they would in a court case. 

Going to Court

Contract disputes are often settled when one party sues another. This is often done when all other options to resolve the conflict have been exhausted. 

Although no one ever really wants to litigate, It often becomes necessary to settle matters in court. No matter what method you use to settle a contract dispute, it is important to have a skilled attorney such as Parikh Law, P.A. by your side. 

Contracts are complicated documents, but when they are fully discussed and written in clear language, they can actually help to avoid disputes in the future.

 

 

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