When dealing with contracts, there is always the possibility that you might end up having to deal with contract disputes.
If you run into such problems, how can you avoid going to court?
Mediation
FINRA discusses alternative methods to dispute resolution, such as arbitration and mediation. These are your best bets when it comes to avoiding the court system.
Mediation allows for parties to work with a neutral third party, the mediator, in order to solve their dispute. This is a good option for situations where the parties believe they can work things out largely on their own.
A mediator cannot provide legal guidance or hand down an edict for the parties to follow. It is up to them to solve their dispute and set their own terms.
Arbitration
For those who need a little more structure, arbitration may work. This is a good medium between mediation and litigation.
Arbitrators hold a similar power to judges. They will listen to all parties present their evidence and argument and make a legally binding judgment. The parties must abide by this ruling.
However, the case does not have to go through the jury system. It costs less in time and money, making it a valuable option.
Creating a strong contract
Finally, the best way to avoid disputes is to prevent them. One of the greatest ways of doing this is by creating a coherent, strong contract from the start. Cover as many areas as possible and speak clearly, leaving no room for mistakes or misinterpretations that a tenant could take issue with later.
