Table of Contents

Dispute Resolution: Definition & Meaning

What does dispute resolution mean?

Dispute resolution refers to the process through which two or more parties find a peaceful solution to a disagreement or conflict. Instead of letting disputes escalate into costly and time-consuming legal battles, dispute resolution methods aim to resolve issues efficiently and fairly. These methods can be formal or informal and focus on helping parties reach an agreement or understanding.

Dispute resolution is important because it offers alternatives to traditional litigation, which can be expensive, slow, and stressful. By using dispute resolution, parties can often preserve relationships and come to mutually satisfactory outcomes without involving courts.

What are examples of dispute resolution?

There are several common types of dispute resolution, including:

Negotiation: the parties communicate directly to try to reach a voluntary agreement without third-party involvement.
Mediation: a neutral third party, called a mediator, helps the disputing parties discuss their issues and work toward a mutually acceptable solution.
Arbitration: an impartial arbitrator listens to both sides and then makes a decision that is usually binding on the parties.
Conciliation: similar to mediation, a conciliator meets with the parties separately to ease tensions and suggest possible solutions.

For example, in a workplace conflict, mediation might be used to help employees and management find common ground. In commercial disputes, arbitration can provide a quicker alternative to going to court.