When business relationships turn sour, contract disputes can be a major hurdle to overcome. In the midst of a disagreement, it’s easy to get caught up in the heat of the moment and consider litigation as the only option. However, there’s a more effective and efficient way to resolve contract disputes: mediation.
What is mediation?
Mediation is a process in which a neutral third-party facilitates a conversation between disputing parties. Their goal is to help reach a mutually beneficial agreement. This approach is particularly useful in contract disputes, where the goal is to find a resolution that works for both parties.
Benefits of mediation
Mediation offers several advantages over traditional litigation. For one, it’s a cost-effective way to resolve disputes. It saves both parties time and money. Mediation also allows for a more flexible and creative approach to resolving disputes, as the parties are not bound by the strict rules of evidence and procedure that govern courtroom proceedings.
Preserving relationships
One of the most significant benefits of mediation is its ability to preserve relationships. In contract disputes, the parties often have an interest in maintaining a working relationship. Mediation provides a safe and neutral space for parties to discuss their differences. They may find common ground without the hostility that can accompany litigation.
Success rates
According to the American Arbitration Association, mediation has a success rate of around 80% in resolving disputes. This is likely due to mediation’s ability to allow parties to take an active role in shaping the outcome of their dispute rather than relying on a judge or jury to make a decision.
In the face of a contract dispute, it’s easy to feel overwhelmed and unsure where to turn. However, mediation offers a viable alternative to litigation. It can provide a cost-effective, flexible and more peaceful way to resolve disputes. If you’re facing a contract dispute, consider exploring mediation as an option. You may also consult a legal professional for additional guidance. They may help you explore different courses of action for your specific situation.