Types of dispute resolution clauses—litigation
Types of dispute resolution clauses—litigation

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

  • Types of dispute resolution clauses—litigation
  • Example dispute resolution clause
  • Issues to consider when drafting a dispute resolution clause

There are an array of different types of dispute resolution clauses, providing for various mechanisms by which parties' disputes can be resolved. A common clause is for the parties to refer their dispute to litigation. This means that the dispute will be resolved by the courts.

Example dispute resolution clause

There is no definitive wording for a litigation clause. However, a common example is:

'The Parties to this agreement agree that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute which may arise (including claims for set-off and counterclaims) under or in connection with this agreement'

This clause provides the following information:

  1. parties—the clause will only apply to the parties to the contract.

  2. court—the dispute resolution mechanism is litigation in the courts of England and Wales. The actual court (eg High Court, County Court etc) will usually depend upon the nature and value of the dispute (see Practice Note: Where to start the claim).