What is the term for a process where a neutral third party evaluates arguments in a contractual dispute?

The term for a process in which a neutral third party evaluates arguments in a contractual dispute is arbitration. In an arbitration setting, the arbitrator acts similarly to a judge by reviewing evidence, listening to both parties' arguments, and making a binding decision regarding the resolution of the dispute. This process is often preferred in contractual matters due to its efficiency, confidentiality, and the ability to tailor procedures to the needs of the disputing parties.

In contrast to alternative processes, arbitration tends to offer a more formal structure, resembling litigation but without the same public exposure and often with faster resolution times. Mediation involves a facilitator helping parties reach a mutually agreeable solution without making binding decisions, while litigation involves taking disputes to court, which can be lengthy and public. Negotiation is a direct discussion between parties to settle a dispute amicably without third-party involvement.

Understanding arbitration as the correct term highlights the differences in dispute resolution methodologies available within professional practices, particularly in fields such as interior design where contracts and client relationships are paramount.