How are contracts enforced?
The most common method used to resolve business contract disputes and enforce contracts, if informal resolution methods fail, is through lawsuits and the court system. If the amount at issue is below a certain dollar figure, the parties may be able to use “small claims” court to resolve the issue. Courts and formal lawsuits are not the only option for people and businesses involved in contract disputes. The parties can agree to have a mediator review a contract dispute. The parties are not bound by a mediator’s decision, but may be convinced to avoid a costly court battle by how the mediator rules The parties can also agree to binding arbitration of a contract dispute. In arbitration, a neutral party listens to the arguments from both sides and issues a decision that is binding on the parties. This is cheaper and less time-consuming than a court battle. When attempting to enforce a contract, an individual or business should always consider the effect any dispute will have on any long-t
