Dispute Resolution

In one sentence

The process and methods parties use to settle disagreements arising from a contract.

Plain English

Dispute resolution refers to the ways parties can handle conflicts when they disagree about a contract. The main options are negotiation (talking it out), mediation (using a neutral helper), arbitration (a private decision-maker), or litigation (going to court). Most contracts spell out which method the parties will use and in what order.

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Example

A commercial lease includes a dispute resolution clause that requires the landlord and tenant to first attempt mediation before either can file a lawsuit. If mediation fails, they can then go to court.

Used in a sentence

“The partnership agreement outlined a three-step dispute resolution process: negotiation, mediation, and arbitration.”

Related terms

Arbitration Clause

A contract provision requiring disputes to be resolved by a private arbitrator instead of court.

Governing Law

The state or jurisdiction whose laws will interpret and enforce a contract.

Jurisdiction

The legal authority of a court to hear and decide a case.

Forum Selection Clause

A contract provision specifying which court or jurisdiction will hear any disputes between the parties.

Remedy

A legal action or payment a court awards to fix a harm or enforce a right after a breach.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.