What occurs if the Parties agree to an alternative dispute resolution process?

When the parties involved in an agreement opt for an alternative dispute resolution process, it signifies a mutual agreement to resolve disputes through a method that diverges from traditional court litigation. This could include methods such as mediation, arbitration, or negotiation, depending on what the parties have consented to.

The primary purpose of alternative dispute resolution (ADR) is to provide a potentially more efficient, cost-effective, and less adversarial means of resolving conflicts. By agreeing on this process, the parties acknowledge that should disputes arise, they will follow the defined methods rather than defaulting to court proceedings. This not only helps in facilitating communication between the parties but also can lead to resolutions that are tailored to their specific needs, all while maintaining a degree of discretion that court cases may not allow.

The focus on an agreed-upon process means that both parties have a say in how to address any disputes, underscoring the collaborative nature of ADR compared to litigation.