Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

Using dispute resolutions clauses in contracts

Business entities entering into an agreement may include clauses for dispute resolution. While this may seem aggressive or cynical, these commonly used clauses can provide a helpful map to resolving a dispute between the two sides during the time of the contract. As an insightful article at Mediate.com pointed out, basic language not tailored to fit the needs of the arrangement will often do nothing to help resolve the matter, but dispute resolution (DR) clauses that address the needs of the contract can be extremely helpful.

Better than going to court?

Litigation is commonly a slow and expensive process. Even when there are courts set aside to specifically address certain areas of law, DR may still be preferable to court. There are several reasons for this:

  • DR clauses provide a flexibility to address the needs of the agreement.
  • DR clauses can enable the two sides to work out a decision of their creation rather than abiding by a ruling.
  • The courts will not redesign the contract if that is necessary.
  • The courts conduct their hearing in public, which may be something both sides wish to avoid.
  • An equitable DR negotiation may preserve the business relationship.

What is in a DR clause?

Depending on the contract, business or corporate law attorney can provide and insight into crafting an effective DR clause as part of the contract. This can include such important details as:

  • Method for notice of dispute
  • Time frames for response
  • Steps for an escalation if the other side does not respond
  • Determining who would oversee the dispute
  • Tailoring different dispute approaches to different issues

Getting the needed outcome

An effective dispute resolution clause works towards a solution that addresses the needs of those involved. Whether it is a straightforward affair to be handled through arbitration or a multi-tiered matter that may eventually end up in court, the idea is to get the two sides talking to find a fair and equitable solution.

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road
Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.