Generally, companies sign contracts and expect them to run smoothly with contract obligations fulfilled and no disputes along the way. Unfortunately, such expectations are not always met. In the event of a contract dispute, one of the parties can file a court process to resolve the alleged breach of contract or fraud committed by the other party. There are many ADR companies in Canada that provide dispute resolution services.
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Mediation and arbitration
Mediation is a dispute resolution technique in which a neutral third party meets the contracted parties to try to facilitate a settlement. Mediators are selected by the disputing parties and are usually well trained in the art of mediation.
A skilled mediator can reduce both parties' emotions and determine their real interests, and then offer creative solutions that can satisfy both parties and resolve disputes without a trial.
Arbitration is another form of dispute resolution. In contrast to mediation, arbitration is a process in which one or more arbitrators selected by both parties hear the benefits of a dispute and decide questions. The decision is final and there is little room for appeal.
Arbitration can be conducted privately or through an approved service such as the Arbitration Association. Arbitration is less formal than legal proceedings. Arbitration Association rules are designed to produce decisions that are less expensive and less time-consuming than normal lawsuits, and this goal is often accomplished.