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Dispute Resolution

Definition

Dispute resolution is the process by which contract parties resolve disagreements about interpretation, performance, or compliance. Most contracts specify a resolution hierarchy - negotiation first, escalation to executive level, then mediation, arbitration, or litigation.

Dispute resolution is the process by which contract parties resolve disagreements about interpretation, performance, or compliance. Most contracts specify a resolution hierarchy - negotiation first, escalation to executive level, then mediation, arbitration, or litigation.

The resolution hierarchy

Well-drafted contracts encourage lower-cost resolution first: direct discussion, escalation, mediation. Arbitration and litigation are typically the final step. Structured pathways reduce the frequency of full-blown disputes.

Preventing disputes through data

Many contract disputes arise from data disagreements - who bought what, at what price, under which terms. Shared structured contract data with live reconciliation prevents most factual disputes by making the underlying data verifiable.

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