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Resolving contract disputes in New York

On Behalf of | Mar 18, 2022 | Business Law |

Parties to a contract might find themselves drifting apart on several issues. One signatory may feel no obligation exists to perform a particular duty, while another party might feel angry over the non-receipt of services, goods, or payments. Regardless of the specific breach, violating a contract could result in a drawn-out battle in a New York courtroom unless the parties find some way to resolve the matter.

Resolving contract disputes

A lawsuit might not be necessary to resolve contract disputes, as the parties could work through their disagreements. When attempts to do so informally falter, perhaps agreeing to mediation may be better. Mediation allows a neutral third party to oversee a conference between the signatories. While the process does not lead to a binding agreement, the meetings could lead to the parties agreeing again. Hopefully, everyone can resolve their differences by the end of the mediation meetings.

For those interested in a similar process, but one that leads to a binding agreement, arbitration may be the answer. The arbitration process may require less collaborative dialogue and focuses on arguing a position or providing evidence to the arbitrator.

Language in the original contract might stipulate requirements to arbitrate or mediate. An arbitration clause might make more sense since the process is binding.

Filing a breach of contract lawsuit

Although arbitration or mediation may be preferable, a lawsuit could prove unavoidable. Under business law, anyone who does not live up to an agreement may face civil litigation. Of course, both parties can argue whether or not a breach occurred, with the court having a final decision.

Perhaps alternative dispute resolution may be less costly than litigation. Each situation has its differences and may require a different path to resolve matters.

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