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ARTICLE · 13 MARCH 2017

Staggered Clauses: A Practical Mean To Dispute Resolution?

It is necessary to remember that a contract is an agreement of wills that are constricted because they seek to obtain a profit or an end with the business.

Costa RicaCorporate/Commercial Law

Within multiple contractual relations there are parties in which exercising their right to free hiring and autonomy of their will agree on certain specific clauses in which they anticipate that before a future conflict derived from the contract they must first be subjected to previous stages such as negotiations or mediations, this before requesting an arbitral court to resolve its dispute.

These types of clauses are known as "staggered clauses".

Why does a staggered clause exist?

It is necessary to remember that a contract is an agreement of wills that are constricted because they seek to obtain a profit or an end with the business. In this situation it must be understood that the original meaning of the parties is not to enter into a dispute, but to obtain the said benefit.

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