Define 'dispute resolution'.

Dispute resolution refers to the methods and processes used to resolve conflicts or disagreements between parties, particularly in a contractual context. The correct choice highlights that the aim of dispute resolution is to resolve disagreements effectively and amicably, ideally preventing the escalation to litigation, which can be time-consuming and expensive.

This process encompasses various techniques, including negotiation, mediation, and arbitration, all of which focus on finding a mutually acceptable solution to the issues at hand. The emphasis is on maintaining relationships and facilitating communication between the parties involved, which is essential in business contexts where ongoing interactions are common.

In contrast, ensuring contract compliance primarily focuses on adherence to the terms of a contract rather than resolving disputes. The negotiation phase of a contract pertains to the initial discussions and agreement of terms before a contract is finalized, which is distinct from addressing issues after a contract is in place. Finally, amending contract terms deals specifically with changes to the existing agreements rather than resolving disputes that may arise from misunderstandings or disagreements regarding those terms.