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ARTICLE · 21 AUGUST 2014

Choice Of Contractual Dispute Resolution Mechanism

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This is the second in a series of bulletins highlighting practical strategies for dealing with common issues in international business transactions and disputes.

CanadaLitigation, Mediation & Arbitration
Stephen Antle
Stephen Antle
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This is the second in a series of bulletins highlighting practical strategies for dealing with common issues in international business transactions and disputes. This bulletin is about choice of contractual dispute resolution mechanism – another key risk management tool.

The Key Message Here?

In the contract governing the international relationship or transaction choose a dispute resolution mechanism. That's it. Just choose a dispute resolution mechanism.

Why?

Because the default dispute resolution mechanism in any country in which you'd want to be doing business is litigation. That means that if you don't choose some other mechanism, you are, by default, choosing to resolve all disputes arising out of your international business transaction by litigation. There's usually a better mechanism available.

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