What is Dispute Resolution Agreement Drafting?
A dispute resolution agreement is a legal contract that explains how parties can navigate conflicts before going to court. It can help to minimize the costly and time-consuming process of legal proceedings.
When drafting a dispute resolution agreement, you should outline the dispute resolution process and explain how it will work so that parties have clarity.
Read the rest of this article for key terms to include in the document, how to structure it, and how a professional lawyer can assist you with the contract drafting process to protect your interests.
What Key Terms are in a Dispute Resolution Agreement?
To provide a clear agreement, make sure that your dispute resolution document includes the following:
- Dispute scope. Explain which disagreement will be covered by the agreement to prevent ambiguity.
- Escalation ladder. It’s important to provide progression for resolving the dispute, such as by starting with negotiation followed by other resolution methods.
- Arbitration rules. Explain the rules and processes that will apply during arbitration.
- Governing law. Identify the laws that govern the contract.
- Costs. Outline what fees and costs are involved and how they will be shared between parties.
- Confidentiality. To keep the dispute private, the agreement should state that it won’t be disclosed to outsiders.
What are Tips for Drafting a Dispute Resolution Agreement?
When drafting a dispute resolution agreement, here are some important tips to consider.
Clearly Explain the Scope
You want to explain the scope of the agreement in simple wording. Ask yourself if the agreement covers all or specific disputes. This prevents ambiguity and future disputes.
Explain Dispute Resolution Stages
Include a step-by-step process for resolving disputes. This can start with negotiation, which allows parties to resolve disputes by communicating with each other. If this doesn’t work, they can go to mediation or arbitration. Litigation should be the last step in the process if the dispute can’t be successfully resolved via previous methods.
Verify How Third Parties are Appointed
Clarify how mediators and/or arbitrators should be selected, what deadlines must be met when selecting them, and what to do if parties don’t agree on the selection. This can help to prevent unnecessary delays or frustrations.
Address Financial Obligations
There are various fees that could be included, such as mediation or arbitration fees, as well as legal costs. Make it clear how parties will share these costs so that there are no payment disputes in future.
Avoid Relying on Contract Templates
While it’s convenient to download a generic dispute resolution agreement template you can use, you should avoid relying on it as it won’t be customized according to your specific arrangement. It also doesn’t consider your risks. It’s better to hire a lawyer to draft your agreement, tailoring it to your situation.
How Does a Lawyer Help You Draft a Dispute Resolution Agreement?
Hiring a lawyer to draft your dispute resolution agreement is advisable, especially if you’re unsure of the first draft of the contract you have and want to feel confident that all its terms are fair and legally valid.
During a contract drafting, a lawyer will conduct the following activities:
- Explaining dispute terms. A lawyer will break down exactly what disputes are covered by the agreement so that there’s no confusion.
- Establishing reasonable deadlines. A lawyer will ensure the agreement has fair timeframes in which to negotiate or progress to the next step in the dispute resolution procedure. This prevents unnecessary delays.
- Allocating financial obligations. They’ll clarify all fees and costs, allocating them to both parties to prevent financial disputes.
- Considering confidentiality. To protect information about the proceedings and regarding evidence shared between parties, the agreement should include confidentiality clauses.
- Including urgent remedies. A lawyer will consider all scenarios that could occur, so they’ll help parties to seek urgent court relief should this be required.
- Ensuring legal compliance. A lawyer is skilled at ensuring all settlements and arbitral awards are legally binding and enforceable.
- Reviewing the dispute resolution agreement. If you’ve already drafted it, a lawyer will conduct a thorough review so that you feel confident about its terms.
Where to Find a Lawyer for Dispute Resolution Agreement Drafting
Once you’ve decided to hire a lawyer to draft your dispute resolution agreement, you might wonder where to find one who can assist you with your legal requirements.
An online legal platform makes it easy for you to find lawyers from the comfort of your home. Instead of calling traditional law firms in your area, use an online legal platform such as ContractsCounsel.
ContractsCounsel is one of the largest online legal marketplaces that enables you to connect with a curated network of lawyers. If you need to hire a lawyer to draft your dispute resolution agreement, here are the steps to follow:
- Visit the ContractsCounsel marketplace from your device.
- Select ‘One-time project’ and ‘Create or update contract.’ Alternatively, you can ask a lawyer to review your agreement by selecting ‘Contract review.’
- Post your project, which is free. Include some details about your project so you can match with suitable lawyers.
- Wait to receive bids. Lawyers directly on the platform will send you multiple bids on your project, so you don’t have to conduct your own lawyer search.
- Review the platform’s lawyer data. You can go through various information about the lawyers, such as their credentials, years of experience, field of expertise, location, and client ratings for previous projects completed on the platform.
- Choose a lawyer to hire, who will draft your dispute resolution agreement for a flat fee.
