Business contracts are the backbone of a successful business. When two parties agree to enter into a contract, they are legally bound by its terms and conditions. If one of the parties fails to fulfill their obligations as stated in the contract, this is considered a breach of contract. Breach of contract disputes may involve non-compete agreements, nondisclosure agreements, licensing contracts, partnership agreements, or other types of agreements.
When faced with a breach of contract issues, many businesses use mediation to resolve the dispute. Mediation involves a neutral third party (the mediator) who helps the parties reach an agreement. The goal of mediation is to find a mutually agreeable solution that satisfies both parties and prevents them from having to go through lengthy and costly litigation in court.
What Happens During Mediation?
During the mediation process, the mediator will listen to both parties and help them discuss the various possibilities. The mediator may also suggest creative solutions to the dispute, such as offering the breaching party the option to make up for their breach in an alternate way. The mediator’s main job is to facilitate communication between the two parties and help them reach an agreement that they are both comfortable with.
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