Legal Guide

How To Resolve a Contractual Dispute

Whether you are a small business or a big enterprise, any dispute can cost your reputation and operations. Whenever you realize any conflict with other parties, you should get out of your way to restore good relationships. The same applies to contractual disputes.

Everyone understands the vital role contractors play in society. An excellent contractual relationship often results in better things. However, what if you find yourself in a dispute with one? According to an Orlando litigation and trial lawyer, breach of contract is usually caused by one party failing to meet their obligation under the contract without legal justification.

You shouldn't hesitate to use the appropriate conflict resolution methods to settle the matter. If you let the conflict stay, it will badly dent your business image and even lead to a costly court case. We compiled some conflict resolution methods to help you.

What Are the Conflict Resolution Methods To Consider?

Below are some of the ways to solve the difference between you and the contractor. Go through them carefully to find the one that suits you. You may be surprised by their efficiency and effectiveness:

  • Go through the records
  • Leverage on your communication channels
  • Mediation
  • Arbitration

1. Go Through the Records

First, you should check if there is any valid agreement between you and the contractor. If you don't find any, you can proceed to your emails to find any previously shared information. The reason for doing that is to find out if there were any issues of dissatisfaction.

Understanding the cause of the disagreement between you is crucial. It can be a mistake for you to head for an advanced conflict resolution method if you don't know what led to the conflict in the first place.

Another importance of going through the agreements is to find out if there is a conflict resolution clause that specifies how you should resolve your differences. As you go through the clause, check if there is a provision on how to solve the dispute's current nature.

2. Leverage on Your Communication Channels

Mostly, conflicts arise due to misunderstandings or miscommunication between the involved parties. But do you know that you can still use the same communication channel to restore the disputes? You can request the contractor to inform you why they are dissatisfied.

You can also state why you feel disinterested in the contractual relationship. After that, you can give the contractor time to respond. That way, you can solve the conflict calmly and professionally without indulging in any legal proceedings with the contractor.

3. Mediation

If both of you try to resolve the dispute through your communication channels and fail, you can resort to a neutral third party. The third-party should be trained personnel on conflict resolution. They will help you in solving the conflict without bias. You can agree to meet at a neutral point to discuss the conflicting issues.

The advantage of mediation is that the third party does not come up with a solution alone. Instead, they engage both of you to craft a sensible and viable resolution. It must include the contract's terms and the conflicting partie sign it to formalize the agreement.

4. Arbitration

Arbitration is another best alternative method of solving the conflict [source]. It is similar to the mediation process. They only differ at the final decision-making stage. The arbitrator is the one to make the final decision and not the parties.

The decision is supposed to be legally abiding. The arbitration process may sound like a court process considering that it may require both parties' presentation of evidence. It may also need the presence of witnesses if there are any.

If the above methods fail to yield the expected results, the parties can opt for a litigation process. But, they will have to involve legal representation. Your lawyer can help you resolve the dispute through litigation.

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