Dispute resolution clauses are often relegated to the end of contractual negotiations or standard “boilerplates” are included with little or no thought as to their appropriateness. Frequently such clauses are not considered important or there is a reluctance to contemplate the possibility of dispute. Like newlyweds, contracting parties can have a rose-tinted picture of the future and neither wants to consider the possibility of divorce.
However, disputes are a fact of life in commerce. Managing and resolving claims effectively is an important part of business. A dispute resolution clause (or at least the wrong clause) can have a profound impact on how claims are resolved and how contractual rights and obligations are enforced. Please click for a full version of this paper, which discusses the selection and use of appropriate and effective dispute resolution clauses.