Dispute Resolution Clause

A Dispute Resolution Clause is a section in a contract that outlines how any disagreements between the parties will be resolved. It typically describes the steps to handle disputes, such as negotiations, mediation, or arbitration, before resorting to legal action. The goal is to provide a clear process to resolve conflicts efficiently, privately, and cost-effectively, avoiding lengthy court battles. This clause helps ensure both parties know the procedures and agree on mechanisms to settle disagreements amicably and predictably.