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When to Consider Mediation for Business Contract Disputes

mediation-contract-disputes.jpgThe purpose of contracts is to create a binding agreement for business transactions, but unfortunately, there are times when these are not upheld. Contracts can be disputed for their validity, enforceability, and meaning all of which can become complex. When there is a business contract dispute, an alternative resolution solution such as mediation might be suggested.

In short, mediation allows for all parties involved to work through their conflicts with the aid of a neutral third party. People typically enter into a contract with good faith suggesting a favorable relationship, which can help in resolution proceedings. The outcome of mediation doesn't necessarily name a "winner," but rather finds a solution that is best suited for both parties during a negotiation.

Why would someone choose mediation? It allows the people involved to keep control of the process. If it is a partnership dispute, it gives the opportunity for come to an agreement more peacefully for the sake of their shared company and avoid costs incurred from litigation.

With that being said, each contract dispute is different and is not an option available for everyone. When there is a breach of contract, a person may experience monetary damages and problems that far exceed the scope of what mediation can handle. Like any business relationship, there are times when salvaging it might be beneficial and other times when it is clear that too much damage has been done.

There are also times that an agreement on both sides is necessary to continue revenue streams for everyone involved as illustrated by the recently publicized contract disputes between Fox News and Dish Network. The International Business Times reported an agreement between the television networks following a Dish Network blackout of Fox News channels affecting subscribers in December and into January.

When mediation is not a solution, our attorneys can litigate for the recovery of any monetary and business costs lost due to a breach of contract. Seek out all of your legal options by having an attorney evaluate your case. If you seek legal counsel regarding business contract disputes in California, contact an experienced San Jose business law attorney at Diemer, Whitman & Cardosi, LLP right away. Call 408-971-6270.

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