Experienced Legal Representation to the Construction Industry in New York City

  1. Home
  2.  → 
  3. Arbitration and Mediation
  4.  → Not every contract dispute has to play out in court

Not every contract dispute has to play out in court

On Behalf of | Mar 30, 2022 | Arbitration and Mediation

Many people associate a breach of contract with court proceedings, but it does not always have to be the case. While failure by the other party to fulfill their contractual obligations might cause you financial losses, going through the traditional legal system is not the only way you can handle matters.

There are several other alternative dispute resolution mechanisms that you may use to find an amicable solution that will work for all the parties to the contract. They all include engaging in direct or indirect negotiations with the other party to find an out-of-court solution.

Mediation and arbitration

Mediation involves bringing in a third party to help resolve any contract disputes. The mediator does this by presenting both parties with solutions that they can either accept or reject. The end goal is finding common ground between the disputing parties by having their concerns and considerations put together to arrive at a solution.

Arbitration is more or less the same as mediation, although it is more formal and almost similar to a court process.

Why should you settle out of court?

The benefits of avoiding the court process of settling contract disputes are many. First, it is much cheaper to settle your disputes without involving the courts. You will not have to deal with expensive legal fees or other expenses you would have otherwise incurred.

In addition, you might save on time by settling out of court. Litigation can be delayed by the backlog of pending cases, and you may be better off resolving issues differently.

Lastly, you have the option of finding a flexible solution that works for everyone. When you go to court, you may have to follow what the judge directs, whether or not it works for you.

Making the best choice

Ultimately, the circumstance of your case will determine the best way of handling the dispute. It means that you should prepare for any direction your case takes, even if you choose to keep away from the courts.