What is likely to happen in the absence of a "Mediation Provision" in a contract?

What is likely to happen in the absence of a "Mediation Provision" in a contract?

• A. Disputes must be resolved through arbitration
• B. Parties will be encouraged to resolve matters informally
• C. Litigation may be necessary to resolve disputes
• D. Disputes automatically get dismissed

Answer: (C)

When a contract does not include a "Mediation Provision," it typically means that there is no predefined process for resolving disputes through mediation. Mediation is often utilized as an alternative to litigation and provides a structured environment for parties to resolve their differences amicably with the help of a neutral third party. Without this provision, the parties may not have an agreed-upon method to address their conflicts outside of court. As a result, if disputes arise, the likelihood of these issues escalating to litigation increases. Litigation involves formal court proceedings, which can be time-consuming, costly, and adversarial. Therefore, the absence of a mediation provision can effectively leave the parties with no choice but to pursue litigation as a means of resolution, making it the most probable outcome in such circumstances.

When a contract does not include a "Mediation Provision," it typically means that there is no predefined process for resolving disputes through mediation. Mediation is often utilized as an alternative to litigation and provides a structured environment for parties to resolve their differences amicably with the help of a neutral third party. Without this provision, the parties may not have an agreed-upon method to address their conflicts outside of court.

As a result, if disputes arise, the likelihood of these issues escalating to litigation increases. Litigation involves formal court proceedings, which can be time-consuming, costly, and adversarial. Therefore, the absence of a mediation provision can effectively leave the parties with no choice but to pursue litigation as a means of resolution, making it the most probable outcome in such circumstances.