Business contract disputes can often become quite messy. The parties who signed the contract may disagree about claims of a breach. One party may refuse to address the issue, to pay appropriate penalties or to cover the damages generated by the breach of contract.
Frequently, frustrated business owners and executives make the difficult decision to file a lawsuit in response to a breach of contract. Doing so is the most straightforward way of resolving the issue. The courts can enforce the contract, award the plaintiff damages or order specific performance.
However, it can take many months before a breach of contract lawsuit actually goes before a judge. In the meantime, the breach may continue to damage one business and the relationship it has with the other party to the contract. Mediation can be a useful tool for those hoping to resolve a contract dispute as soon as possible.
Contract mediation can be an efficient process
When mediating a business dispute, both parties may have their own legal representation. They then arrange a sit-down mediation session with a neutral third-party mediator. A mediator understands the law and has training on how to facilitate conflict resolution and communication.
The mediation process involves discussing the perspectives of both parties at length and then exploring potential solutions to the dispute. Successful contract mediation can require as little as a few hours to complete. Even if multiple sessions are necessary to resolve a contract dispute, the mediation process is typically far faster than litigation.
The parties can meet with the mediator jointly or separately, negotiate a workable solution to the contract breach and then sign a binding agreement that makes the terms they set enforceable. They can achieve all of that in less time than they might need to wait to obtain an initial hearing in front of a civil court judge.
As an added bonus, successful contract mediation can reduce the long-term harm that the dispute causes to the working relationship between the two parties. By resolving the matter amicably outside of court, both parties can limit their expenses and can theoretically preserve their working relationship.
Proposing contract mediation could be a smart move either before filing a breach of contract lawsuit or while waiting for a hearing in court. Those who want private or quick solutions to contract violations may discover that mediation is the ideal solution to their current contract disputes.