When people do not see eye to eye, there is a right way to resolve their differences. One path that may help pave the way for resolution is mediation.
Mediation is a form of alternative dispute resolution. It involves the parties who disagree, legal representatives and a neutral third party. During mediation, the neutral party or mediator works with both sides providing opportunities for compromise. Mediation is helpful in several situations. Find out a few practical applications in business and real estate.
Someone breaks a contract
Parties create a contract to memorialize an agreement for goods or services. The terms and conditions of the contract set out details of the transactions between parties, including:
- The price, including deposits
- The acceptance of the terms and conditions of the transaction
- The expectations each party is to perform to fulfill the contract
- The benchmarks for fulfillment
- The penalties for breaching the contract
When a party does not follow through and perform according to the legal agreement, the innocent party has the right to take legal action to either force performance or sever ties. Mediation may help parties either renegotiate the terms of a contract to fit circumstances better or end it. This applies to any business or real estate contact.
An ownership dispute arises
In both real estate and business, ownership may become an issue. For property, this may have more to do with the chain of title and who has legal rights to the land under contract. In a business, ownership disputes have more to do with partnership disagreements. Mediators may assist in resolving ownership disputes in both situations.
Ending a dispute quickly and economically may prove beneficial for all parties involved. Participating in mediation may dispense with the conflict in an amicable and legally binding manner.