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Project Management & Agile · Intermediate

Alternative Dispute Resolution (ADR)

Methods such as mediation and arbitration used to resolve contract disputes without litigation.

Definition

Mediation uses a neutral facilitator to help parties reach agreement; arbitration produces a decision from a neutral third party that is often binding.

Example

A licensing dispute is resolved through binding arbitration as specified in the contract.

Exam tip

ADR is preferred to litigation for claims.

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