Understanding Contract Enforcement: Key Methods and Considerations
Contracts enforced through litigation are the most common way to resolve disputes in commercial agreements. If the amount in question is below a certain threshold, parties may opt to settle the matter in small claims court, which is faster and less costly.
Alternatives to Litigation
Litigation isn’t the only way to enforce contracts. Mediation offers an alternative by bringing in a neutral third party to help settle the dispute. While a mediator’s decision is not legally binding, it often persuades both parties to avoid an expensive legal battle.
Another effective alternative is binding arbitration, where an impartial arbitrator listens to both sides and renders a decision that is legally enforceable. Arbitration provides a less formal setting compared to a court trial but delivers a binding outcome.
Impact of Contract Disputes on Future Relations
When enforcing a contract, businesses or individuals should always consider how a dispute might affect future business relationships. Balancing the need to enforce the contract with the importance of maintaining ongoing partnerships can be key to preserving valuable connections while ensuring legal agreements are honored.
Ask an Estate Planning Attorney Today
If you need professional advice on enforcing contracts or assistance with estate planning, Hudack Law is here to help. Visit Hudack Law Estate Planning Attorney to learn more about our services. We’re proud to serve California, Utah, and Arizona. Call our Toll-Free line at (877) 314-4309 to schedule a consultation with one of our experienced attorneys.