Mediation is a non-binding, voluntary process that can be used to resolve many contract disputes. In the performance of a contract, it is not uncommon for situations to arise that the parties did not originally contemplate. A change in the original contract terms may be the result of unexpected supply issues, logistical or practical problems, or sudden legal, environmental, or labor obstacles. The original contract may also have vague or contradictory terms, or it may even be incomplete, leading to a difference in understanding between the contracting parties. In such cases, work or performance may grind to a halt, or need funds may not be disbursed adequately or may even be withheld altogether. When this occurs, the contract may need to be terminated or renegotiated. In either case, contracting parties may benefit by engaging in mediation.
With the help of a trained mediator, parties may be able to salvage a contract where work has ground to a halt or where the parties wish to part ways without the need to engage in expensive litigation. Mediation enables parties to conserve their financial resources by identifying the areas of conflict and cooperating on solutions that reduce losses on both sides or that empower them to establish a more productive and transparent relationship moving forward.
Mediation may also be used during the contract negotiation process where there has been a breakdown in the communications between parties. Using an impartial, third-party mediator, parties may overcome obstacles that arise in the contract negotiation process that have caused the contract to stall.
Contract disputes that may benefit from mediation include:
Landlord-Tenant contracts / Leases
Real estate purchases or sales
Sale of goods and manufacturing agreements
Business-to-Business (B2B) contracts
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