Please read the following scenario and attend the task:

There was a dispute based on the contract for construction of a new townhouse in which the client applied for mediation stating, "the accused party (contractor) lied about the contract terms, which differed from the terms of the construction contract established with consent of both parties, and made the applicant affix his signature and seal to it. Furthermore, the accused party made contradictory assertions about fulfillment of the contract, and due to repeated actions lacking good faith, the applicant was asking for cancellation of the contract and return of preliminary contract money in the sum of $87000." The accused party replied, "there has been no unilateral change in the contract terms, and the construction work could not be started in the respective period due to delayed payment of the contract money and failure to determine the final building construction plan. We therefore emphatically repudiate the accusations." TASK: Discuss is details two possible settlements which could be reached for the above matter.