A Dispute Resolution Clause is a section of a contract that outlines the process by which the involved parties must resolve any issues that arise out of the agreement. Such clauses are typically included to provide a course of legal action for contractual disputes, like a disagreement on a specific clause, and non-contractual disputes, such as claims of misrepresentation, or disagreements about compensation post-contract.
DISPUTE RESOLUTION CLAUSE
While no one intends to enter into a contract that may lead to legal disputes, the inclusion of a Dispute Resolution Clause helps foster better business relationships in the event a disagreement does arise. A clause provides the peace of mind that there’s a structured procedure for resolution, just in case.
Note: The information in this blog is not legal advice. Consult a lawyer for advice for your situation.