The Mediation Process for Breach of Contract Disputes

 Posted on March 09, 2023 in Business Formation

Fort Worth, TX Business Breach of Contract AttorneyBusiness 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.

The Benefits of Mediation

Using mediation to resolve breach of contract disputes has several benefits. It is a quicker and more cost-effective alternative to litigation. The parties remain in control of the outcome and have the freedom to craft a solution that works for them. It is also a confidential process, meaning that any discussions and negotiations made during the mediation remain private. Finally, it is a less adversarial process than litigation, which can help maintain a positive relationship between the two parties.

Litigation is Sometimes Necessary

While there are many benefits to mediation, not every breach of contract can be resolved through mediation. If the parties cannot find a mutually-agreeable solution, the next step may be a lawsuit. The legal remedies for breach of contract vary.

Monetary damages are the most common way to resolve a breach of contract. The breaching party is required to compensate the non-breaching party in a way that puts the party in the position that they would have been in if the breach had not occurred. However, monetary damages are not always practical or adequate. The breaching party may also be ordered to perform the duty under the original contract. The non-breaching party can also cancel the contract and sue for restitution.

Contact our Tarrant County Breach of Contract Lawyer

If you need to address a breach of contract or other contract dispute, our Fort Worth business law attorneys can provide the assistance and representation you need. Call our office at 817-349-7330 for a free consultation.



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