I. Trade and Commercial Disputes: Procedure for Settlement
More often than not, disputes are inevitable in business
relationships and commercial transactions. It is open to the
parties to choose whether to follow the normal channel for
determination of controversy through the machinery of the courts or
submit the matter to alternative dispute resolution methods (ADR).
Where the latter is the case, a dispute resolution clause is
inserted beforehand in the contractual document be-tween parties
that in the event of a dispute, par-ties would explore
opportunities for amicable settlement. The clause is often drafted
to make reference to alternative dispute resolution methods
(negotiation, mediation, arbitration) a condition precedent to the
institution of a court action (in the event that the dispute
cannot be otherwise resolved through ADR). Where parties have
inserted arbitration clauses in their agreements, any dispute that
falls within the scope of the arbitration
