Generally speaking it is best to avoid litigation and resolve disputes out of court. There is generally a significant time and cost investment in litigation with resources deployed in litigation better off invested elsewhere.
If a dispute can be resolved out of court on suitable terms, this is generally preferable.
There are a range of mechanisms through which disputes can be resolved out of court. These include through correspondence, negotiation, informal settlement conference, mediation and arbitration.
A range of options can be deployed to resolve matters.
If a settlement is reached, it is important to properly document the settlement often by way of a Deed of Settlement and Release.
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