The court may also permit the parties to introduce evidence of past practices in connection with the contract in question, in connection with other agreements between the parties or even in connection with contracts with other parties. Alternative dispute resolution clause Many contracts include a provision requiring all disputes over the contract to be resolved by some form of alternative dispute resolution instead of by the court. Generally these provisions are binding as long as you knowingly agree to them. An alternative dispute resolution clause may state that you try to negotiate or mediate before going to court or it may state that your only remedy is arbitration. You may choose whether or not to have a lawyer participate in alternative dispute resolution.
Negotiation is when the two parties try to informally work out the differences.
Mediation occurs when both sides agree on a neutral third party who listens to details of the incident from both the plaintiff and defendant. The process is very informal. The mediator points out potential strengths and weaknesses on both sides and tries to get the parties to reach an agreement. Because the mediator has no vested interest in the case, the mediator can offer an objective perspective. Arbitrators can hear evidence and make decisions, including requiring one of the parties to pay damages.