This form is a Private Dispute Resolution Clause usable to compel negotiation and mediation prior to arbitration or litigation in contracts where licensing, patents, or commercial trade secrets are a factor.
District of Columbia Private Dispute Resolution Clause
State:
Multi-State
Control #:
US-TS10042B
Format:
Word;
PDF;
Rich Text
Instant download
Description
How to fill out Private Dispute Resolution Clause?
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FAQ
Alternative dispute resolution (ADR) allows parties to customize their dispute resolution process. Parties can insert the standard arbitration or mediation clause in their contract and can further customize their clause with options that control for time and cost.
As a point of categorisation, the expression "dispute resolution clause" refers to the contractual provisions by which parties specify how their disputes are to be resolved: this includes arbitration, mediation and reference to litigation through the courts (commonly referred to as a "jurisdiction clause").
Alternative dispute resolution (ADR) refers to the different ways people can resolve disputes without a trial. Common ADR processes include mediation, arbitration, and neutral evaluation.
The parties agree that any claim or dispute relating to this agreement, as well as any other matters, disputes, or claims between them, shall first be Mediated and/or Arbitrated in an attempt to resolve any and all issues. Initially, the parties agree to consider mediating the dispute.
Mandatory arbitration clauses usually declare that the parties will not litigate their legal problems if a dispute occurs over the contract, such as a breach of contract or business dispute. Instead, the parties agree to arbitration to resolve the dispute.
Disputes can be time-consuming, diverting valuable resources and attention away from core business activities. With a well-defined ADR clause, parties can establish a timeline and procedure for resolving conflicts, ensuring a more efficient and timely resolution.
No, having a dispute resolution clause in place is not required but we highly recommend it particularly for contracts involving technical issues, such as IT contracts and construction agreements.
The dispute resolution clause(s) must provide certainty and set out a clear mechanism for the resolution of a dispute. They need to be more than an agreement to agree to resolve any dispute. They should provide some detail about the dispute resolution process and how this will be undertaken.
