It implies that all parties understand the terms of the contract, that the contract has a lawful objective, and there is sufficient cause or consideration. Mediation is most effective between two individuals who have a working or neighborhood relationship and don't want the dispute to jeopardize that relationship. Arbitration is the process of setting a dispute with a third party who is qualified to understand the nature of the grievance. The disputants agree to accept the decision of the arbitrator. It is frequently used in the securities industry and in labor disputes.
Prenuptial agreements are contracts entered into by individuals before marriage.
They are frequently used to separate one individual's assets from the other's if the marriage ends in divorce. They are popular today because of the high rate of divorce. Under Chapter 13, an individual who has income can work out a repayment schedule with creditors over a longer period of time than the original debt contract. Although everyone's experience with bankruptcy is different, it usually results in making it more difficult to receive future credit. It can also leave emotional scars.