Dispute resolution

How It Works

The integration of smart contracts within property transactions revolutionizes how disputes and inspections are handled:

• Open Market for Inspections: Before finalizing a transaction, an independent inspector, chosen from our platform's database, can be hired via smart contract to verify property conditions. Or a personal inspection before Funds is released only upon mutual satisfaction.

• Automated Mediation: If disputes arise, Ai agents in the smart contract can initiate mediation or arbitration, with outcomes enforced by the contract itself.

Pre-set Mechanism: Within the smart contract, specific conditions or triggers for disputes are defined. For example, if there's a disagreement about property condition or payment terms not being met, these conditions can automatically engage a mediation or arbitration process.

Mediation or Arbitration: Once triggered, the smart contract could either:

• • Mediate by suggesting neutral parties or Ai agent to help resolve the dispute. This could involve selecting from a pool of trusted mediators or arbitrators registered on the platform, whose services are invoked through the contract.

  • Arbitrate by having pre-agreed rules or an automated system that decides based on the data and terms within the contract. This might involve Ai Agent analyzing the situation or might escalate to a human arbitrator if the situation is complex.

• Outcome Enforcement: The beauty of smart contracts is their self-executing nature. The outcome of mediation or arbitration is automatically enforced by the contract:

• • If mediation leads to an agreement, the contract can release funds, update ownership records, or take any action agreed upon by the parties.

  • If arbitration results in a decision, the smart contract will execute this decision, like refunding money, transferring ownership, or even nullifying the deal if that's the resolution.

This process reduces the need for external legal proceedings, which can be time-consuming, costly, and less transparent. By embedding mediation and arbitration into the smart contract:

• Trust is Enhanced: Both parties know that a fair mechanism for resolving disputes exists, which is transparent and bound by the terms they agreed to.

• Efficiency Increases: Disputes can be resolved much quicker without the need for courts or lengthy negotiations.

• Cost is Reduced: Legal fees and court costs are minimized or eliminated.

• Transparency is Maintained: All actions and outcomes are recorded on the blockchain, providing an immutable record of the dispute resolution.

This system leverages blockchain's capabilities for not just executing contracts but also for managing and resolving conflicts in a manner that aligns with the decentralized ethos of Sheda Solutions' vision.