Dealing With a Breach of Contract? Choose Mediation

breach of contract

Dealing With a Breach of Contract? Choose Mediation

Business and commercial contracts can often be complex, lengthy, and litigious. The more complex a contract, the higher the chances of a contractual dispute. To address the issue of a breach of contract, mediation could be the most reliable and cost-effective dispute resolution process. 

Growing Popularity of Mediation 

Although arbitration is another useful alternative dispute resolution mechanism to deal with breach of a contract, it gives little control over the final outcome to the disputants and may not save significantly on the costs compared to litigation.

Considering these drawbacks of arbitration, contractors and business owners are increasingly choosing mediation. One of the key benefits of mediation for a breach of contract resolution is that the disputants (instead of attorneys or a judge) retain control over the process, the final outcome, and the costs.

Proven Results with Mediation 

In case of breach of contract mediation, the results over the years have been remarkably positive. More than 80 percent of contractual disputes that go through voluntary mediation are resolved satisfactorily. At the same time, the likelihood of both parties honoring the terms of the settlement is much higher because of the voluntary element.

Businesses often want to continue doing transactions with each other in the future, and mediation helps ensure that there is no permanent breakdown of a business relationship in many cases. Mediation is more of facilitated negotiation (with a neutral mediator guiding the process), and as a result, the parties can learn from the process and minimize their incidence of future contractual disputes.

benefits of mediation for a breach of contract

Cost and Risk Control 

For most parties that seek resolution to breach of contract issues through mediation, one of the key benefits is greater control over their costs and risks. The parties to the dispute are in control of the process throughout. An experienced breach of contract attorney with mediation skills can help the parties work together to resolve the dispute rather than resort to litigation. 

The mediator can play a critical role by explaining the advantages of a cooperative settlement against a legally enforced ruling of the courts or arbitrators. For people who are in business, it becomes easier to negotiate with each other with the help of a knowledgeable mediator and resolve their contractual dispute. 

Compared to litigation, mediation costs are far lower and are usually shared among the parties. The moment the parties move from a position of resolving the dispute among themselves to a position where a third party will rule on the dispute, the costs, and risks involved increase manifold for each party.

breach of contract mediation

Types of Contractual Issues Resolved through Mediation 

Sales and manufacturing contract disagreements, construction disputes, equity claims, and almost any type of breach of contract problem can be resolved through mediation.

Another benefit of breach of contract mediation is that even where the dispute is so complicated that litigation is unavoidable, the problems can be narrowed down by first taking the dispute through the mediation process.

Mediation may even work within the parts of a larger litigated matter to arrive at a less disruptive resolution of the contractual issues.

Are You Dealing With a Breach of Contract Case? Call Shapiro Mediation Services Today 

Shapiro Mediation Services has made an impact in communities across Massachusetts and South Florida. The firm, led by experienced legal professional Anna Shapiro, Esq., also continues to provide high levels of service, excellence, and compassion no matter what the circumstance. Call (339) 298-7733 to schedule a free consultation with one of our mediators at our Massachusetts or South Florida office, or contact us online.