Drafting a dispute resolution clause
Drafting a dispute resolution clause

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Drafting a dispute resolution clause
  • Key requirements for an enforceable dispute resolution clause
  • Agreements to negotiate—enforceable as dispute resolution clauses?
  • Drafting guidance for dispute resolution clauses
  • Refer to a clear ADR process
  • Have a trigger for the process
  • Include a time frame (beginning and end)
  • Consider identifying decision-makers
  • Be clear on whether the ADR process shall take place before or during litigation/arbitration
  • Make the ADR process obligatory
  • More...

As seen in Practice Note: Dispute resolution clauses—what and why, it is generally seen as being advantageous to include a dispute resolution clause in an agreement. If drafted well it can avoid much uncertainty in the future and provide a clear and uncontroversial roadmap for the parties to try to resolve their dispute without resort (or at least not immediately) to litigation.

Many contracts contain dispute resolution clauses. Sometimes these are straightforward clauses simply providing for litigation or perhaps arbitration (and sometimes also dealing with jurisdiction and applicable law). However, it is possible to include a dispute resolution clause which provides an alternative to this by setting out other forms of alternative dispute resolution (ADR) to be followed in the event of a dispute. These are sometimes identified as ADR clauses.

For guidance on sample wording, see Practice Note: Types of dispute resolution clause—litigation, mediation, multi-tier, hybrid and carve-out clauses.

Note: content in this subtopic may reference the wording of a number of different institutions offering ADR services. These include the institutions listed here. However, please note that their inclusion in this content does not denote any preference and other service providers are available:

  1. London Court of International Arbitration (LCIA)—recommended clauses

  2. CIArb—recommended clauses

  3. Centre for Effective Dispute Resolution (CEDR)—model ADR documents

Key requirements for an enforceable dispute resolution clause

The courts will give effect to a dispute resolution clause

Popular documents