Legal analysis: First of all, reconciliation. On the basis of respecting the interests of both parties, the parties reach a settlement agreement on the disputed matters through consensus, thus solving the dispute.

The second is mediation. Under the auspices of the People's Mediation Committee, both parties resolve the contract disputes between the parties through persuasion and education. If both parties accept mediation and reach an agreement, they may apply to the people's court for making a mediation document, which has the same effect as the effective judgment of the court.

The third is arbitration and litigation. After the dispute occurs, if the two parties fail to reach a settlement or mediation, they may bring an arbitration according to the arbitration agreement, or they may bring a lawsuit directly to the people's court.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 583 Where one party fails to perform its contractual obligations or fails to comply with the contract, and after performing its obligations or taking remedial measures, the other party still suffers other losses, it shall compensate for the losses.

Article 584 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, thus causing losses to the other party, the amount of compensation shall be equivalent to the losses caused by the breach of the contract, including the benefits that can be obtained after the performance of the contract, but shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.