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Methods of contract dispute resolution

Contract means an agreement between the parties to establish, change or terminate civil rights and obligations. In fact, many cases of contract dispute occur because one of the parties violated the contractual obligations. To resolve a contract dispute, is the only way to bring a lawsuit to the Court?

Dispute resolution is a term that refers to a number of processes that can be used to resolve a conflict, dispute or claim. Dispute resolution may also be referred to as alternative dispute resolution, appropriate dispute resolution, or ADR for short.

There are many different methods of dispute resolution, but they broadly fall into one of two camps: non-binding or binding.

Non-binding forms of dispute resolution focus on the parties reaching a consensual resolution. Examples include:

  • Negotiation - this is sometimes split into two separate phases - first, negotiations between representatives of the parties who are responsible for operating a contract on a day to day basis and then, if that proves unsuccessful, negotiations between senior executives with authority to settle the dispute. In some cases, negotiations may also be attended by the parties lawyers.
  • Mediation - a process whereby an independent third party mediates between the parties to explore areas for potential compromise. Ultimately it is still for the parties to decide whether they can agree a resolution to their dispute.
  • Early Neutral Evaluation - an impartial evaluator gives the parties a view on the merits of their respective cases, to help them assess strengths and weaknesses and inform negotiations, or potentially subsequent binding dispute resolution proceedings.

In binding forms of dispute resolution, the parties submit their dispute to a third party decision-maker (e.g. a judge or arbitrator) to make a decision that will be binding upon them (subject to any agreed appeal process). The most common alternatives are:

  • Litigation - the most commonly used and perhaps best-understood method of dispute resolution, using the national courts to determine the dispute. Although the courts are taking active steps to manage the cost and duration of litigation, decisions are subject to appeal on a point of law, so it is possible that it may take many years to reach a final, binding decision.
  • Arbitration - a private process where the parties agree that their disputes are to be resolved by one or more arbitrators instead of the court. Arbitration can be entirely domestic, but it is most often used to resolve disputes with a cross-border dimension, either because arbitration awards can be easier to enforce internationally than court judgments, or because parties may be wary of submitting to the jurisdiction of a foreign court. Arbitration is generally more flexible than litigation, as the parties have scope to choose their arbitrator(s) and shape the procedure to be adopted.
  • Expert Determination / Adjudication - in these methods, a neutral third party makes a determination which is binding on the parties and can then be enforced through the courts if necessary. These processes are typically quick, often sought in respect of a discrete issue, and are presided over by industry experts, so maybe suitable when the parties need a quick decision in order to continue business, whereas litigation and arbitration are generally much more drawn-out processes.

Regardless of which dispute resolution method is selected, clients should be consulted by a Lawyer to maximize the protection of their legal rights and interests. With a team of experienced lawyers, Apolo Lawyers will assist clients in resolving contract-related disputes. Specific tasks performed by Apolo Lawyers include:

Study the entire file, and give a legal opinion on the case:

  • Advice on the choice of dispute settlement method;
  • Instruct, support customers to collect and consolidate evidence;
  • Representing customers in negotiation, negotiation and conciliation;
  • Participating in litigation at Commercial Arbitration;
  • Participate in litigation at court levels.

Above are the necessary contents that Apolo Lawyers thinks customers need to master to best protect their rights and legitimate interests when disputes between shareholders or members of the company occur. Apolo Lawyers is a reliable law firm with broad experience in this expertise, we believe to provide the client with a smooth process to resolve disputes in the shortest time.

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