A dispute resolution agreement is a legally binding document that sets out the process for resolving disputes between two or more parties. Such an agreement can be utilized in a wide range of situations, including business contracts, employment agreements, and even lease agreements.

The purpose of a dispute resolution agreement is to provide a clear and structured process for resolving conflicts so that parties can avoid costly litigation and maintain a positive working relationship. This article will provide a sample dispute resolution agreement that can be used as a template for drafting your own agreement.

Sample Dispute Resolution Agreement

This agreement is made and entered into on [date] between [Party A] and [Party B], collectively referred to as the “parties.”

Purpose

The parties hereby agree to resolve any disputes that may arise between them in an orderly and efficient manner in accordance with the terms and conditions set forth in this agreement.

Dispute Resolution Process

In the event of a dispute, the parties shall attempt to resolve the matter amicably by first engaging in good faith negotiations within [number] days of the written notice of dispute by one of the parties.

If the parties fail to reach an agreement through negotiation, they shall submit the matter to mediation. The parties shall mutually agree on a mediator to be used for the mediation process. The mediator shall be neutral, independent and competent in the area in which the dispute has arisen.

If the parties fail to resolve the dispute through mediation, the matter shall be referred to binding arbitration in accordance with the rules and procedures of the [name of the arbitral institution]. The arbitration shall take place in [city and country]. The decision of the arbitrator shall be final and binding on the parties.

Costs

Each party shall bear its own costs incurred in connection with the dispute, including legal fees, mediation fees, and arbitration fees.

Confidentiality

All negotiations, mediation and arbitration proceedings, and the award shall be kept confidential by the parties and the mediator or arbitrator unless otherwise stipulated by the law.

Governing Law

This agreement shall be governed by and construed in accordance with the laws of [state or country].

Entire Agreement

This agreement constitutes the entire understanding between the parties and supersedes all prior negotiations, understandings, and agreements between the parties.

Conclusion

Having a dispute resolution agreement in place can save parties time, money, and maintain relationships. The sample dispute resolution agreement provided in this article can serve as a useful template to create your own agreement tailored to your specific needs. It is always recommended to seek legal advice before drafting an agreement to ensure all legal requirements are met.