diff --git a/test/dispute-flow/contract.test.ts b/test/dispute-flow/contract.test.ts
new file mode 100644
index 0000000..1fe7bb2
--- /dev/null
+++ b/test/dispute-flow/contract.test.ts
@@ -0,0 +1,130 @@
+import { DisputeFlowService } from '../../backend/src/dispute-flow/dispute-flow.service';
+import { db } from '../../backend/src/db';
+
+// Mock the database connection for testing
+jest.mock('../../backend/src/db', () => ({
+  db: {
+    query: jest.fn()
+  }
+}));
+
+describe('Dispute Flow Contract Tests', () => {
+  let service: DisputeFlowService;
+
+  beforeEach(() => {
+    service = new DisputeFlowService();
+    // Reset all mocks before each test
+    jest.clearAllMocks();
+  });
+
+  it('should create a dispute with all required fields', async () => {
+    const mockDispute = {
+      id: 1,
+      dealId: 123,
+      openedByUserId: 456,
+      status: 'open',
+      reasonCode: 'NO_SHOW',
+      summary: 'Helper did not show up',
+      requestedOutcome: 'refund',
+      createdAt: new Date(),
+      updatedAt: new Date()
+    };
+
+    (db.query as jest.Mock).mockResolvedValue({ rows: [mockDispute] });
+
+    const result = await service.createDispute({
+      dealId: 123,
+      openedByUserId: 456,
+      reasonCode: 'NO_SHOW',
+      summary: 'Helper did not show up',
+      requestedOutcome: 'refund'
+    });
+
+    expect(result).toHaveProperty('id');
+    expect(result).toHaveProperty('dealId');
+    expect(result).toHaveProperty('openedByUserId');
+    expect(result).toHaveProperty('status', 'open');
+    expect(result).toHaveProperty('reasonCode');
+    expect(result).toHaveProperty('summary');
+    expect(result).toHaveProperty('requestedOutcome');
+  });
+
+  it('should transition dispute status correctly through the flow', async () => {
+    // Mock initial creation
+    (db.query as jest.Mock)
+      .mockResolvedValueOnce({ rows: [{ id: 1, dealId: 123, openedByUserId: 456, status: 'open', reasonCode: 'NO_SHOW', summary: 'Helper did not show up', requestedOutcome: 'refund', createdAt: new Date(), updatedAt: new Date() }] })
+      .mockResolvedValueOnce({}) // updateDisputeStatus
+      .mockResolvedValueOnce({}) // addEvidence
+      .mockResolvedValueOnce({}) // updateDisputeStatus to mediation
+      .mockResolvedValueOnce({}) // resolveDispute
+      .mockResolvedValueOnce({ rows: [{ id: 1, disputeId: 1, eventType: 'resolved', actorUserId: 456, payloadJson: JSON.stringify({ decision: 'refund', reason: 'Helper did not show up' }), createdAt: new Date() }] }); // getDisputeEvents
+
+    const dispute = await service.createDispute({
+      dealId: 123,
+      openedByUserId: 456,
+      reasonCode: 'NO_SHOW',
+      summary: 'Helper did not show up',
+      requestedOutcome: 'refund'
+    });
+
+    expect(dispute.status).toBe('open');
+
+    // Transition to evidence
+    await service.updateDisputeStatus(1, 'evidence', 456);
+    
+    // Add evidence
+    await service.addEvidence(1, { file: 'test.jpg' }, 456);
+    
+    // Transition to mediation
+    await service.updateDisputeStatus(1, 'mediation', 456);
+    
+    // Resolve dispute
+    await service.resolveDispute(1, { decision: 'refund', decisionReason: 'Helper did not show up' }, 456);
+
+    const events = await service.getDisputeEvents(1);
+    expect(events).toHaveLength(4); // open, evidence, mediation, resolved
+  });
+
+  it('should log all dispute events correctly', async () => {
+    (db.query as jest.Mock)
+      .mockResolvedValueOnce({ rows: [{ id: 1, dealId: 123, openedByUserId: 456, status: 'open', reasonCode: 'NO_SHOW', summary: 'Helper did not show up', requestedOutcome: 'refund', createdAt: new Date(), updatedAt: new Date() }] })
+      .mockResolvedValueOnce({}) // addEvidence
+      .mockResolvedValueOnce({ rows: [{ id: 1, disputeId: 1, eventType: 'evidence', actorUserId: 456, payloadJson: JSON.stringify({ file: 'test.jpg' }), createdAt: new Date() }] });
+
+    const dispute = await service.createDispute({
+      dealId: 123,
+      openedByUserId: 456,
+      reasonCode: 'NO_SHOW',
+      summary: 'Helper did not show up',
+      requestedOutcome: 'refund'
+    });
+
+    await service.addEvidence(1, { file: 'test.jpg' }, 456);
+
+    const events = await service.getDisputeEvents(1);
+    expect(events[0]).toHaveProperty('eventType', 'evidence');
+    expect(events[0].payloadJson).toContain('test.jpg');
+  });
+
+  it('should handle final decision with audit trail', async () => {
+    (db.query as jest.Mock)
+      .mockResolvedValueOnce({ rows: [{ id: 1, dealId: 123, openedByUserId: 456, status: 'open', reasonCode: 'NO_SHOW', summary: 'Helper did not show up', requestedOutcome: 'refund', createdAt: new Date(), updatedAt: new Date() }] })
+      .mockResolvedValueOnce({}) // resolveDispute
+      .mockResolvedValueOnce({ rows: [{ id: 1, disputeId: 1, eventType: 'resolved', actorUserId: 456, payloadJson: JSON.stringify({ decision: 'refund', reason: 'Helper did not show up' }), createdAt: new Date() }] });
+
+    const dispute = await service.createDispute({
+      dealId: 123,
+      openedByUserId: 456,
+      reasonCode: 'NO_SHOW',
+      summary: 'Helper did not show up',
+      requestedOutcome: 'refund'
+    });
+
+    await service.resolveDispute(1, { decision: 'refund', decisionReason: 'Helper did not show up' }, 456);
+
+    const events = await service.getDisputeEvents(1);
+    expect(events[events.length - 1]).toHaveProperty('eventType', 'resolved');
+    expect(events[events.length - 1].payloadJson).toContain('refund');
+    expect(events[events.length - 1].payloadJson).toContain('Helper did not show up');
+  });
+});
\ No newline at end of file
diff --git a/test/dispute-flow/dispute-flow.test.ts b/test/dispute-flow/dispute-flow.test.ts
new file mode 100644
index 0000000..d1a6a04
--- /dev/null
+++ b/test/dispute-flow/dispute-flow.test.ts
@@ -0,0 +1,123 @@
+import { DisputeFlowService } from '../../backend/src/dispute-flow/dispute-flow.service';
+import { db } from '../../backend/src/db';
+
+// Mock the database connection for testing
+jest.mock('../../backend/src/db', () => ({
+  db: {
+    query: jest.fn()
+  }
+}));
+
+describe('DisputeFlowService', () => {
+  let service: DisputeFlowService;
+
+  beforeEach(() => {
+    service = new DisputeFlowService();
+    // Reset all mocks before each test
+    jest.clearAllMocks();
+  });
+
+  describe('createDispute', () => {
+    it('should create a new dispute', async () => {
+      const mockDispute = {
+        id: 1,
+        dealId: 123,
+        openedByUserId: 456,
+        status: 'open',
+        reasonCode: 'NO_SHOW',
+        summary: 'Helper did not show up',
+        requestedOutcome: 'refund',
+        createdAt: new Date(),
+        updatedAt: new Date()
+      };
+
+      (db.query as jest.Mock).mockResolvedValue({ rows: [mockDispute] });
+
+      const result = await service.createDispute({
+        dealId: 123,
+        openedByUserId: 456,
+        reasonCode: 'NO_SHOW',
+        summary: 'Helper did not show up',
+        requestedOutcome: 'refund'
+      });
+
+      expect(db.query).toHaveBeenCalled();
+      expect(result).toEqual(mockDispute);
+    });
+  });
+
+  describe('addEvidence', () => {
+    it('should add evidence to a dispute', async () => {
+      (db.query as jest.Mock).mockResolvedValue({});
+
+      await service.addEvidence(1, { file: 'test.jpg' }, 456);
+
+      expect(db.query).toHaveBeenCalled();
+    });
+  });
+
+  describe('updateDisputeStatus', () => {
+    it('should update dispute status', async () => {
+      (db.query as jest.Mock).mockResolvedValue({});
+
+      await service.updateDisputeStatus(1, 'evidence', 456);
+
+      expect(db.query).toHaveBeenCalled();
+    });
+  });
+
+  describe('resolveDispute', () => {
+    it('should resolve a dispute', async () => {
+      (db.query as jest.Mock).mockResolvedValue({});
+
+      await service.resolveDispute(1, { decision: 'refund', decisionReason: 'Helper did not show up' }, 456);
+
+      expect(db.query).toHaveBeenCalled();
+    });
+  });
+
+  describe('getDisputeById', () => {
+    it('should get dispute by ID', async () => {
+      const mockDispute = {
+        id: 1,
+        dealId: 123,
+        openedByUserId: 456,
+        status: 'open',
+        reasonCode: 'NO_SHOW',
+        summary: 'Helper did not show up',
+        requestedOutcome: 'refund',
+        createdAt: new Date(),
+        updatedAt: new Date()
+      };
+
+      (db.query as jest.Mock).mockResolvedValue({ rows: [mockDispute] });
+
+      const result = await service.getDisputeById(1);
+
+      expect(db.query).toHaveBeenCalled();
+      expect(result).toEqual(mockDispute);
+    });
+  });
+
+  describe('getDisputeEvents', () => {
+    it('should get dispute events', async () => {
+      const mockEvents = [
+        {
+          id: 1,
+          disputeId: 1,
+          eventType: 'evidence',
+          actorUserId: 456,
+          payloadJson: JSON.stringify({ file: 'test.jpg' }),
+          createdAt: new Date()
+        }
+      ];
+
+      (db.query as jest.Mock).mockResolvedValue({ rows: mockEvents });
+
+      const result = await service.getDisputeEvents(1);
+
+      expect(db.query).toHaveBeenCalled();
+      expect(result).toEqual(mockEvents);
+    });
+  });
+});
\ No newline at end of file
diff --git a/test/dispute-flow/integration.test.ts b/test/dispute-flow/integration.test.ts
new file mode 100644
index 0000000..185df01
--- /dev/null
+++ b/test/dispute-flow/integration.test.ts
@@ -0,0 +1,20 @@
+import { DisputeFlowService } from '../../backend/src/dispute-flow/dispute-flow.service';
+
+// Simple integration test for the dispute flow
+describe('Dispute Flow Integration Test', () => {
+  let service: DisputeFlowService;
+
+  beforeEach(() => {
+    // We'll test the logic without mocking the database
+    service = new DisputeFlowService();
+  });
+
+  it('should implement complete dispute flow', async () => {
+    // This is a placeholder for integration testing
+    // In a real scenario, we would need to set up a test database
+    expect(service).toBeDefined();
+    
+    // The actual implementation tests are in the unit tests
+    // This test just verifies that the service exists and can be instantiated
+  });
+});
\ No newline at end of file