Alternative Dispute Resolution (ADR)
A method of resolving disputes outside of court through processes such as mediation, arbitration, or negotiation.
What is Alternative Dispute Resolution (ADR)?
Alternative Dispute Resolution (ADR) refers to methods of resolving legal disputes outside of court, including mediation, arbitration, and negotiation. ADR is often faster, less formal, and more cost-effective than traditional litigation.
Why It Matters?
It helps parties reach settlements efficiently while reducing court caseloads and legal expenses.
Example
Two businesses in a contract dispute use arbitration to settle their disagreement instead of filing a lawsuit.
Related Terms
Mediation
Litigation