All types of commercial contracts, from sales contracts to merger agreements, often contain provisions on "dispute resolution." These terms usually govern what happens if a claim or dispute arises out of or in connection with the agreement.
In essence, a dispute resolution clause is a contractual agreement on how the parties will resolve any differences that may arise. If you are looking for the best dispute resolution company visit https://stat11.ca/dispute-resolution-services/.
After years of evaluating various types of commercial contracts, it can be observed that parties often do not pay sufficient attention to these provisions when drafting contracts.
When drafting a contract, the parties often focus on the price and other key terms and conditions. In addition, when making a transaction, both parties usually expect a mutually beneficial relationship.
Dispute resolution provisions often address two potentially important issues: (1) where the claim or dispute is resolved, and (2) how the dispute is resolved. Both questions require careful examination.
Where disputes are resolved. Dispute resolution provisions often contain a place of jurisdiction clause, also known as an in-place election provision.
These rules determine which court or tribunal will resolve disputes and often stipulate that the courts or courts of a particular jurisdiction will only settle the dispute. While there are occasional exceptions, courts usually apply this provision.
How the dispute was resolved. Dispute resolution provisions may also contain provisions requiring dispute resolution through binding arbitration and not through courts. In arbitration, cases are usually decided by one arbitrator or by a panel of three arbitrators. The arbitrators are mostly lawyers with experience in their field or experts who are not lawyers.