The process for settling a contract dispute out of court is called “alternative dispute resolution” (ADR). ADR offers an alternative to the traditional courtroom litigation process. The most commonly used methods are mediation, arbitration and negotiation.
Mediation involves bringing in a neutral third-party mediator who facilitates dialogue between the parties to help them arrive at a mutually acceptable agreement. Arbitration also involves appointing an arbitrator who will make a binding decision on the matter after hearing both sides' arguments and evidence. Negotiation does not involve any outside party or legal judgement—the parties involved come together to discuss their differences and try to reach an agreed-upon solution without involving lawyers or courts.
Regardless of which method you choose, it's important that each party keep clear records of communication with one another throughout the process as well as any agreements they may have reached regarding resolving the dispute. This can be helpful if either side decides to pursue further legal action down the road should things fail to work out amicably through ADR methods alone. It's also advisable that both parties seek independent legal counsel prior to entering into negotiations or agreeing upon any terms related to resolving their dispute in order ensure that they fully understand all implications of such decisions from a legal standpoint before moving forward. Lastly, if you're considering pursuing formal litigation against someone over breach of contract issues, it's important that you file your claim within your state’s applicable statute of limitations period
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