The concept of Alternative Dispute Resolution (ADR) denotes the process in which disputes are addressed and settled outside of the courtroom. In a more detailed language, ADR refers to the ways in which disputes are resolved without litigation. These ways may involve negotiation, arbitration, or mediation.

Mediation: This kind of ADR makes use of an unbiased third party known as a mediator. The mediator does not have the right to decide any outcome of a dispute or compel the disputing entities to agree upon the same. The mediator working with the disputing entities tries to reach a mutual solution, which is usually non-binding. The mediation can be mandated by the courts if necessary, but the entire procedure remains voluntary, offering the disputing entities the chance to deny the agreement. Mediation is totally confidential and the entities can control the process. 

Arbitration: This kind of ADR is somewhat like a non-formal trial and makes use of an unbiased third party. A decision is issued by the chosen third party after it hears each side. According to what the disputing entities have agreed upon, this decision is non-binding or binding. 

Negotiation: This kind of ADR does not involve any unbiased third party for assisting the disputing entities to come to a negotiation. The entities work together and reach a compromise. During negotiations, the disputing entities can get their lawyers to represent them.

It is highly recommended to the disputing parties to always try the ADR process before going for formal litigation.