What does "Good Faith" mean in the context of dispute resolution?

In the context of dispute resolution, "Good Faith" refers to the genuine intention of parties to resolve their differences amicably and constructively. Choosing to resolve a dispute in writing demonstrates this commitment to engage in a constructive dialogue. It signifies that the parties are willing to communicate openly, exchange information, and negotiate terms with honesty and integrity.

This approach often involves establishing a clear understanding of the issues at hand, which can lead to a resolution that is satisfactory to all involved. Engaging in dispute resolution with good faith is crucial as it fosters a collaborative atmosphere and may help prevent the escalation of the conflict, making future negotiation more feasible.

In contrast, a formal legal process to resolve disputes represents a more adversarial approach, and arbitration requires the parties to submit to a third party's decision, which may not always reflect their interests or desires. An informal conversation, while potentially part of good faith efforts, lacks the structure and formality that written communication can provide, which is often critical for ensuring clarity and accountability in disputes.