Contract disputes refer to any and all disagreements that may arise in a company or partnership as a result of a breach in contract. In this situation, all parties have the right to go to court for resolution of the dispute. However, some methods of alternative dispute resolution are gaining popularity in Texas. Engaging in alternative dispute resolution is usually cheaper and less time-consuming than heading to court.
Voluntary participation in arbitration or mediation can occur in the case of a contract dispute. Arbitration provides a neutral third party, known as an "arbitrator," who meets with the disputing parties. After hearing both sides of the dispute, the arbitrator makes a decision, which is binding on the parties who have agreed to enter into arbitration.