Research Paper Example | Topics and Well Written Essays - 2500 words - 3

Research Paper Example However, the application of alternative dispute resolution methods significantly reduces cost incurred in solving such disputes among many other benefits that are accrued by parties who resort on applying these techniques. This research paper will explore the alternative dispute resolution in contracting, highlights their advantages and/or disadvantages, recommend steps to prepare for each type of action, and discuss how legally binding the decided outcome of each ADR may be for the parties involved. Alternative Dispute Resolution ("ADR") in contracting refers to the alternative methods of helping the parties resolve legal problems before going to court (Nolan-Haley, 2013). According to American Arbitration Association and Fordham University (2006), ADR refers to the numerous methods that are used to solve disputes without involving the conventional court system. They are associated with numerous benefits such as being less expensive and timely than formal trials as well as providing the needed privacy for discreet matters. Moreover, ADR processes help in maintaining relations with strategic business partners, and provide more flexible and creative resolutions to disputes. Almost all ADR processes involve autonomous third person referred to as a â€Å"neutral†, who attempts to constrict the areas of conflict or solve them (Sourdin, 2011). There are four main types of ADR namely negotiation, mediation, collaborative law, and arbitration (Nolan-Haley, 2013). Negotiation is one of the less formal and most simple types of Alternative Dispute Resolution (ADR). It involves starting a dialogue between the conflicting parties with the primary motive being to attain understanding, gain advantage in results of dialogue, or resolve points of difference (Sourdin, 2011). During a negotiation, disputants meet informally whether in the presence of a council or not, in an attempt to resolve their differences. In some cases, courts give the disputants an