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Mediation for Contract Disputes

by | Nov 18, 2015 | Business Law


Contracts have a purpose and it’s a simple one. They exist in order to create a binding agreement between two or more parties. Unfortunately for all, there are times in which the binding nature of the contractual agreement is completely disregarded. In some cases, there is a dispute (validity, enforceability, etc.) It can all get pretty complex. When there is a business contract dispute, there is an alternative solution: mediation.

If your company has become involved in a business contract dispute you may have heard mention of mediation. When is it a good idea to consider mediation for a business contract dispute?

Mediation provides a chance for the different parties involved in the contract dispute to attempt to work through the conflict with the aid of a neutral party, the mediator. In the beginning, individuals typically enter into contractual agreements with good faith and a favorable relationship. This can help in resolution proceedings with a mediator. When resolving this type of conflict through mediation, there’s not necessarily a “winner” – rather a solution is agreed upon that is best suited to appease both parties in an ongoing negotiation handled by the mediator of choice.

Mediation can be beneficial for individuals who want to keep control of the process and the outcome. For instance, in partnership disputes, it offers the opportunity for parties to the contract to come to a peaceful resolution that while potentially a compromise on both their parts would be peaceful for the sake of the company they share. It would also benefit them both by avoiding the potentially high cost of litigation that mediation avoids entirely.

Every contract dispute is unique and mediation may not be in your or your company’s best interest, but if you are interested in discussing it further, contact the southern California business attorneys at The Law Office of the Law Office of Ernesto Aldover. We can help you determine the best option available to resolve your breach of contract.