Alternative Dispute Resolution (ADR) refers to methods of resolving disputes outside of formal court proceedings. It typically involves the use of a neutral third party to facilitate the resolution of a dispute between two or more parties.
ADR includes a range of methods, such as negotiation, mediation, conciliation, and arbitration. In negotiation, the parties attempt to reach an agreement on their own. Mediation and conciliation involve the use of a neutral third party to help the parties reach an agreement. In arbitration, the parties submit their dispute to a neutral third party who makes a binding decision.
ADR is often seen as a quicker, more cost-effective and less confrontational way of resolving disputes than going to court. It can be particularly useful for disputes that involve ongoing relationships between the parties, such as disputes between businesses or disputes between landlords and tenants.
Many jurisdictions have implemented legislation and regulations that encourage or require parties to consider using ADR before resorting to litigation. In some cases, courts may even require parties to attempt ADR before the case can proceed to trial.
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