When you signed a contract with a new employee, a client or a vendor, you set certain terms that you expected the other party to follow. Unfortunately, something went wrong, and they have fallen out of compliance with the contract.
A breach of contract can cost your company money or damage its reputation if the breach affects your ability to make good on your obligations to others. Now you are left with the decision of either taking a loss for your company or trying to enforce your contract.
Addressing a breach of contract often requires that you go to court. Going to court can be expensive and could damage your company’s reputation in certain cases. However, mediation is an alternative dispute resolution option that could help you settle that contract issue out of court.
How contract mediation works
When an individual or business violates the terms of a contract with your company, your business can seek to enforce the contract or possibly even invalidate it. The courts could even award your damages if the breach was serious enough.
Still, going to court will mean a lot of expense and massive delays, in addition to potentially permanently damaging your relationship with the other party. Going through mediation instead can allow you to preserve the relationship while still addressing the issue. Mediation involves working with a neutral professional to resolve the dispute in a way that is fair to everyone involved.
If the other party is not open to mediation or compromise initially, filing a civil lawsuit against them for the breach of contract might motivate them to come to the table and compromise. Exploring ways to handle complex contract disputes outside of court can help you defend your company.