Alternative Dispute Resolution (ADR) Meaning & Definition
Alternative Dispute Resolution (ADR) is a procedure for settling disputes by means other than litigation such as- Arbitration, Mediation, Conciliation. An ADR involves appointment of a third party to preside over a hearing between two parties and help theses parties to settle their dispute out of the court, privately and without the interference of the Court.
However, the disputes in this system can be settled with (or without) the help of the third party.
The main advantage of the ADR system is that- it is a speedy and cheap way of settling the disputes between the parties when compare to the litigation process which is a long time consuming procedure and expensive.
The disadvantage of the ADR system is that it may involve compromise of the legal rights.