In business, things don’t always go as planned. You might have the best contract in the business, but if the other party isn’t doing what they’re supposed to, it still hurts your bottom line.
When you have a contract dispute, it may be time to turn to the law for help. In your contract, there may be an arbitration clause, which means that you will need to take the case to arbitration instead of to a judge in a court room. Arbitration, which is less formal but similar to a trial, is generally binding.
Your contract’s arbitration clause focuses on resolving conflicts without a court date
While a contract with an arbitration clause prevents you from taking your case to court, that doesn’t mean that another party violating your contract won’t go without consequences. When you go to arbitration, an arbitrator, who may be a past judge or specifically trained individual, will listen to what both sides have to say. They will go by the terms of arbitration that are listed in your arbitration clause, and their decision is final.
Sometimes, contracts have an arbitration clause for minor issues but still allow litigation for major problems. That’s something you’ll want to discuss with your attorney when building a contract, so you have access to the remedies that you may need to use in the future.
If an arbitration clause is in your contract, you’ll likely need to abide by it as you handle this dispute. Your attorney will speak with you more about it when you bring the issue to their attention.