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.
Georgia 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
A dispute resolution clause is a critical clause of any contract. It will outline how parties should respond in a dispute and the preferred dispute resolution process and will avoid premature and unnecessary court proceedings.
What happens if there is no dispute resolution clause? If there's no dispute resolution clause, the parties follow the contract's governing law or local contract laws.
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.
In sum, arbitration without an arbitration clause is a perfectly available dispute resolution method provided that the parties conclude a submission agreement once a dispute has arisen.
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.
Arbitration can be voluntary (the parties agree to do it) or mandatory (required by law). Most contract arbitration occurs because the parties included an arbitration clause requiring them to arbitrate any disputes "arising under or related to" the contract.
