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.
Delaware Private Dispute Resolution Clause is a legal provision commonly included in contracts to outline the procedure for resolving conflicts or disputes that may arise between parties involved in the agreement. This clause offers an alternative to litigation, aiming to facilitate a more efficient and cost-effective resolution process. The Delaware Private Dispute Resolution Clause typically allows the parties involved to resolve their dispute through arbitration or mediation, rather than going to court. By including this clause, the parties agree to waive their right to a trial by jury and opt for a private and confidential resolution process. Arbitration and mediation are the two main types of private dispute resolution methods often associated with the Delaware Private Dispute Resolution Clause. 1. Arbitration: Arbitration involves the appointment of a neutral third party, an arbitrator or a panel of arbitrators, who act as decision-makers in the dispute. The arbitrator(s) hear and evaluate the evidence and arguments presented by both parties, and then issue a binding decision, called an award. This process may follow formal or informal rules and can be conducted in-person or remotely. 2. Mediation: In mediation, a neutral mediator facilitates communication and negotiation between the parties in order to help them reach a mutually acceptable agreement. Unlike arbitration, the mediator does not make a final decision or settlement. Instead, they assist the parties in exploring options and finding common ground. Mediation promotes collaboration and allows the parties to maintain control over the outcome. The Delaware Private Dispute Resolution Clause also addresses certain procedural aspects, such as the selection of the arbitrator or mediator, the location of the proceedings, the language to be used, and the time limits for initiating the dispute resolution process. It is essential to carefully draft and tailor the clause to meet the specific needs of the parties and the nature of the agreement. In conclusion, the Delaware Private Dispute Resolution Clause is a contractual provision that offers an alternative to litigation by implementing arbitration or mediation methods. By providing flexibility, confidentiality, and efficiency, this clause enables parties to resolve disputes outside a traditional courtroom setting, potentially saving time and costs associated with lengthy court proceedings.
