- AUSTIN ASSOCIATION OF MEDIATORS
Contract
Mediation in Contract Disputes
The types of contracts that are suitable for mediations range from formal, written contracts to informal, verbal contracts. Contracts specify that one party will provide services, or a product, in exchange for the other party’s compensation.
Disputes arise when either party feels that the other did not adequately perform his part of the contract. Often, the service or product did not meet the expected degree of quality or timeliness of delivery. Other disputes arise when the amount and timeliness of the reimbursemment is in question.
Disputes that are especially suitable for mediation involve two parties that performed in good faith but find that their expectations were not fully met. These can result when the details of the contract lacked specificity, mutual understanding was not achieved, or c onditions changed during the performance of the contract. Examples include home improvements that did not meet the owner’s expected standard or were slowly performed. The provider may think he did not expect the conditions that he found and thus required more work and more compensation.
On occasion, the two parties may agree that one of the parties deserves compensation but disagree on the amount. An example would be when an item is lost or destroyed that has a sentimental value for the owner that is much more than its replacement value.
Successful mediations of these disputes result when each party has an opportunity to fully explain his position, vent his feelings, and hear the other party do the same. The terms of such mediations may include an agreement that the provider replace or improve the product, or changes of the amount of reimbursement, or a combination of both.
The advantages that the disputants receive are a chance to be heard, a timely and mutually a greeable solution, and an avoidance of legal expenditures.