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.
Washington 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
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.
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.
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.
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.
Is Arbitration Enforceable in Washington State? Generally speaking, state and federal law favor arbitration as a dispute resolution process. If one party to the dispute doesn't believe an arbitration clause in a contract is enforceable, that party holds the burden of proving the clause is unenforceable.
In private judging, parties authorize an expert in their legal dispute to resolve the issue. The parties hire a private judge, often a former judge or an attorney. The parties take turns presenting their case to the judge, after which the judge issues a legally binding decision. The court appoints a private judge.
