What are the common methods of dispute resolution in contracts?

What are the common methods of dispute resolution in contracts?

The common methods include negotiation, mediation, arbitration, and litigation. Each has its own process and benefits.

Can you explain the difference between mediation and arbitration?

Sure! Mediation involves a neutral third party helping the parties reach a mutual agreement, while arbitration is more formal, with an arbitrator making a binding decision.

Which method is usually faster?

Mediation is generally faster than arbitration and litigation, as it focuses on negotiation rather than a formal hearing.

Are there any situations where litigation is preferred?

Yes, litigation may be preferred when a legal precedent is needed, or when parties want a public record of the dispute.