Clause guide
Dispute Resolution clause: meaning, risks, and what to negotiate
Defines how disputes between the parties will be resolved.
What it means
This clause determines whether disputes are handled in court, arbitration, or through mediation, which can dramatically change cost and speed.
Common risks
- • You may be forced into expensive arbitration.
- • The dispute venue may favor the other party.
- • The process may limit appeals.
What to check before signing
- • Is the dispute resolved in court, arbitration, or mediation?
- • Where will the dispute take place?
- • Who pays the arbitration costs?
Negotiation ideas
- • Add mediation before formal disputes.
- • Ensure the venue is neutral.
- • Split arbitration costs fairly.
Example clause
“Any dispute arising from this Agreement shall first be submitted to mediation, and if unresolved, to binding arbitration.”
Frequently asked questions
Is arbitration better than court?
Arbitration can be faster but may limit appeals and transparency.
Related clauses
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