Clause guide
Escalation Clause clause: meaning, risks, and what to negotiate
Sets a process for raising unresolved issues to more senior decision-makers before stronger remedies are used.
What it means
Escalation procedures can help solve disputes quickly and preserve the commercial relationship before formal action is taken.
Common risks
- • The process may delay urgent action.
- • Escalation steps may be vague or unrealistic.
- • One party may use the process to stall.
What to check before signing
- • How quickly must issues be escalated?
- • Who are the named escalation contacts?
- • Does escalation pause or delay other rights?
Negotiation ideas
- • Use short, practical escalation timeframes.
- • Name clear decision-makers or roles.
- • Preserve emergency rights where immediate action is needed.
Example clause
“If the parties are unable to resolve an operational dispute within five (5) business days, the matter shall be escalated to senior management for good-faith discussion before formal proceedings are commenced.”
Frequently asked questions
What is an escalation clause?
It is a clause setting out how unresolved issues are raised to more senior people before further action is taken.
Related clauses
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