Can Mediation Be Used to Resolve Business Contract Disputes?

 Posted on April 25,2022 in Uncategorized

While business contracts can be crucial for protecting the interests of a company and other parties, there are a variety of situations where business owners may need to determine how to address a breach of contract. For example, a service provider may not have fully provided the services described in a contract within the correct time frame, or a former employee may have violated the terms of a non-compete agreement. In these cases, a business may seek to enforce the terms of a contract or pursue compensation for financial losses that occurred because of a breach of contract. While these issues may be addressed through litigation in court, the parties involved may benefit by using other methods to negotiate a settlement. Mediation can be a beneficial way of resolving contract disputes, and it will often allow the parties to reach agreements and settle disputes much more quickly and efficiently.

Understanding the Mediation Process

In some cases, a contract may include terms stating that the parties will use mediation to address any disputes that may arise. In the absence of these terms, the parties may also agree to participate in mediation and attempt to negotiate a workable settlement before proceeding to litigation. By using mediation, the parties can approach their issues amicably, and they can agree to cooperate to find solutions that will protect the interests of both parties and allow them to maintain ongoing relationships.

During the mediation process, a neutral mediator will serve as an intermediary between the parties and an advisor during discussions. The mediator will not have any decision-making authority; instead, the parties will need to reach agreements on how their disputes should be resolved. By facilitating discussions, offering suggestions, and working to defuse conflict, the mediator can help the parties find mutually beneficial solutions. The parties will need to be in full agreement on all decisions that are made.

Mediation can be a good way to resolve disputes related to contract breaches, especially in situations where the parties are willing to cooperate and wish to maintain ongoing business relationships. By discussing the reasons for a breach of contract and the ways both parties have been affected, the parties can craft solutions that will meet their needs and protect their interests. This method will often allow the parties to resolve disputes much more quickly while avoiding the expenses and complications of litigating matters in court.

Contact Our Tarrant County Business Contract Dispute Attorney

At Gonzalez Law, PLLC, we understand the legal issues that can affect business contracts, and we can help business owners understand their options for addressing a breach of contract. We can advise you on whether mediation may be a good method for resolving your specific contract disputes or whether you may wish to pursue other options. To set up a free consultation and get legal help with these matters, contact our Fort Worth breach of contract lawyer today by calling 817-349-7330.

Sources:

https://www.pon.harvard.edu/daily/mediation/navigating-the-mediation-process/

https://www.cose.org/en/Mind-Your-Business/HR/ADR-Clauses-in-Contracts-Should-You-Mediate-Arbitrate-or-Litigate

https://www.wipo.int/amc/en/mediation/guide/