Can you handle contract breaches outside of court?

When you create a contract with other parties, the intent is to ensure everyone is on the same page and there is a remedy if one side does not fulfill their end of the bargain.

So how do you handle contract breaches when they happen? Do you always have to go through court? The good news is, you do not.

Arbitration

There are alternative methods of resolving and handling disputes that do not involve a trip to the local courthouse.

Arbitration is the most similar to litigation, and an arbitrator has similar powers and responsibilities to a judge. They listen to all sides present their arguments and evidence. Then, they make a decision that the entire group must legally abide by.

Arbitration takes less time but can cost more than a court case, though. It also protects everyone’s information, as it is not public access approved like court case documents.

Mediation

Mediation works better for people who are having a more amiable disagreement. The mediator will guide all parties through a discussion in the hopes that everyone will reach a final resolution that they can all abide by. Mediators do not have the ability to force everyone to abide by their word.

Why avoid litigation?

But why do you want to avoid going to court in the first place? Not only is it expensive and time consuming, but it is an invasion of privacy due to court records. It also burns bridges, which is one of the last things any business owner wants to do.  Unless you are of the right mind about it, litigation can be highly distracting to your business.