dispute resolution
Definition
Dispute resolution refers to the various ways that two parties can settle a disagreement without necessarily going to court. These methods include negotiation between the parties directly, mediation where a neutral third party helps you reach a compromise, and arbitration where a neutral decision-maker hears both sides and makes a binding ruling.
Example
If a client refuses to pay your invoice and your contract includes a dispute resolution clause, you may be required to go through mediation or arbitration before you can file a lawsuit against them.
Watch Out
Many contracts include dispute resolution clauses that require you to use arbitration instead of a courtroom, which can limit your legal options and rights before a dispute ever arises.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.