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Alternative Dispute Resolution
Alternative Dispute Resolutions (ADR) are extremely common in contracts. When two businesses work together for a common purpose, as in a grocer and a farmer, ADR in a contract offers the two businesses an alternative to going to court. ADR is much cheaper than a law suit.
Examples of Alternative Dispute Resolutions.
Examples include resolving disputes between contracting parties, especially in business transactions such as, as stated above, farmers with grocers, cement company and commercial construction, even between attorneys and their clients in malpractice cases.
Advantages and disadvantages of ADR.
Advantages
← Often quicker than going to trial. ← Often less expensive, saving the litigants court costs, attorney's fees and expert fees. ← Permits more participation and empowerment, allowing the parties the opportunity to tell their side of the story and have more control over the outcome. ← Allows for flexibility in choice of ADR processes and resolution of the dispute. ← Fosters cooperation by allowing the parties to work together with the neutral to resolve the dispute and mutually agree to a remedy. ← Often less stressful than litigation.
1 Disadvantages of ADR
← If the ADR process is binding, the parties normally give up most court protections, including a decision by a judge or jury under formal rules of evidence and procedure, and an appeal. ← ADR may not be effective if it takes place before the parties have sufficient information to resolve the dispute. ← The neutral may