The importance of a clearly drafted dispute resolution clause should never be underestimated. It may have serious implications for how disputes arising under a contract are resolved and obligations enforced.

Each contract is different and requires a custom-made dispute resolution clause. To that end, the use of generic dispute resolution clauses “pulled from the Internet” is ill-advised.

A dispute resolution clause specifies how the parties wish their disputes arising under their contract to be resolved. It may specify one or more mechanisms for dispute resolution, including negotiation, mediation, arbitration or litigation.