Why you need a dispute resolution clause

On Behalf of | Jul 19, 2022 | Contract Disputes

There are a number of ways to handle a contract dispute for your business in Florida. One of the best things you can do is make sure to include a dispute resolution clause in your agreement. Doing so will give you a means of negotiating an end to an issue before it develops into an impasse.

A dispute doesn’t have to end in litigation

Contract disputes can arise in a wide variety of situations. They can come about as the result of a deadline being missed or a project going considerably over its projected budget. A dispute can erupt over the terms of a contract with regard to bonus payments or percentages on a series of deals. When they do arise, they need to be solved.

One of the best ways to defuse a dispute even before it can begin is to include a special kind of clause in your contract. This is known as a dispute resolution clause. It outlines a series of remedies that can be had recourse to in case you can’t seem to resolve an issue. These remedies can be used to break an impasse.

It will be up to both parties to agree on what the terms of the dispute resolution clause will consist of. For example, they need to agree on when to concede when a dispute is blocking progress and when an outside solution must be adopted. All of these various conditions can be included in the contract itself.

Mediation is a means of resolving disputes

Business litigation can cause projects to grind to a halt, all the while costing you massive amounts of energy ,time, and money. There are several methods you can use to resolve a dispute so that you can get back on track.

The dispute resolution clause that you include in your contract should include provisions for the preferred method. This may include mediation, arbitration, or any other forum that both parties agree on. The point will be to mandate a means of communicating quickly in order to solve disagreements.