Contract disputes are resolved in multiple ways:

• mediation: an unbiased, third-party representative helps to achieve resolution by prompting discussion of the issues at hand and helping the parties to arrive at a settlement.  
• arbitration: similar to mediation, a neutral third party intervenes, but they make the call as to who is liable for the issues, not the individual parties. The arbitrator makes this decision based on concrete evidence. 
• litigation: in the most formal method of resolution, the court of law settles the dispute based on concrete evidence, and they hold one or both parties liable. 

negotiation: this is the most informal method of resolution. The parties involved do not utilize a neutral third party to make decisions but rather come to a settlement themselves. They may, however, consult their contract lawyers.