The Basics: What Should A Dispute Resolution Clause Say?

Parties embarking on a new commercial venture together are often positive about their relationship and focused on making it work to their mutual benefit. Understandably, they can be reluctant to spend much time planning for what should happen if matters later turn sour. However, it is vital to give some thought in advance to the dispute resolution clauses in your contract to ensure that there is an appropriate procedure in place to deal with disagreements in a structured and proportionate way which gives the parties the best chance of resolving them as quickly and cost efficiently as possible. In this article we look at some of the key considerations when drafting an effective dispute resolution clause.