There are many situations when Kentucky residents may be dealing with contracts, including business owners hiring employees and residents signing leasing agreements. Regardless of what your case may be, you should know as much as possible about contracts. In particular, you should know what to do if one party breaches a contract.
Contract disputes are often messy affairs, but they do not have to be. If you understand your options for conflict resolution, you can streamline the process.
What is litigation?
FINRA examines two popular alternative dispute resolution methods: arbitration and mediation, which differ from litigation. Litigation is the option you think of when you talk about “taking someone to court”. With litigation, all parties present your side to a judge. The judge makes a decision based on what happens in the courtroom and hands down a binding judgment. This is best if you have a high stakes case that involves many assets. Otherwise, it is costly and time-consuming with few benefits.
How do arbitration and mediation stack up?
Both arbitration and mediation count as alternative methods to litigation. Arbitration exists between litigation and mediation. An arbitrator still has the power to hand down a binding decision. But you do not need to go through the process of taking your case to court. This means you save money and time, as well as avoid having your case in the public record.
Mediation is great if your dispute is something you feel you can resolve on your own with a little guidance. Mediators cannot make decisions for you. They are there to voice their opinions, keep people calm and ensure everyone gets heard. From there, you work things out on your own. Depending on what your disagreement looks like, you can use any of these tools to solve your issue.