Contracts are the tie that binds two businesses together when it comes coming to launching and managing operations. Yet, far too often, the promise of a satisfactory long-term relationship can come to a sudden end should a disagreement or contract breach occur.
While many disputes find resolution through negotiations, other scenarios can see warring parties taking their disagreements to court. While effective, litigation is also costly and complicated, not to mention the money and time spent to secure a resolution.
The benefits of ADR
While the courtroom is a common venue for cases like these, many contract and business-related disputes can be resolved through alternative dispute resolution (ADR). The long-used process can also protect sweat and actual financial equity, with warring parties controlling their own destinies.
The focus should be on coming together on a mutually beneficial agreement and preserving business associations. Oft-used delay tactics only create a bad situation with parties spending as much on legal fees as they would filing a lawsuit.
While contract breaches can be intentional, most cases result from an honest mistake or simply misunderstanding the terms. ADR can be particularly effective for those scenarios if only to avoid courtroom litigation over a highly resolvable issue. Even just having two parties sitting down to discuss the dispute can also find closure.
Proactive steps also help by periodically reviewing the language to account for operational changes and overall business growth.
Mediation should remain as an option. A professional facilitating discussion is a much-needed failsafe to ensure the business survives and thrives.