Sample Contract Clauses

Conflict is inevitable. Even under the best of circumstances, and between organizations with the most positive working relations, there is the potential for conflict.  When such conflict arises, companies are faced with the overwhelming time, expenses and negative effects on their business operations that often go hand-in-hand with the traditional litigation process.  At ADR Systems, we recommend planning for the inevitable through the use of dispute resolution clauses in your commercial contracts.

Thoughtfully crafted dispute resolution clauses, inserted at the time a contract is negotiated or consummated, allow parties to implement optimal strategies for conflict resolution before a problem arises.  By planning ahead, parties can avoid the negative press, costly delays and expenses often associated with traditional litigation. By anticipating conflict, you have the opportunity to implement pro-active, constructive procedures that will guide you through the resolution of any disputes and potentially protect important business relationships.  Doing this at the onset of a contractual relationship saves time and money. Once a dispute arises, communication often breaks down and negotiating dispute resolution procedures becomes much more difficult for everyone involved.

ADR Systems of America offers the following model clauses that may be inserted into a commercial contract before any disputes arise.  These clauses may either be used as they are, or with such modifications as are suitable for your particular needs:

  1. Basic Arbitration Clause – provides for Arbitration only (page 3)
  2. Arbitration Step Clause 1 – provides for Negotiation Step Prior to Arbitration Step (page 4)
  3. Arbitration Step Clause 2 – provides for Negotiation and Mediation Steps Prior to Arbitration (page 5)
  4. Mediation / Arbitration Step Clause – provides for Mediation Step Prior to Arbitration (page 7)
  5. Basic Mediation Clause – provides for Mediation only (page 8)
  6. Negotiation / Mediation Step Clause – provides for Negotiation Step Prior to Mediation (page 9)

These model clauses are not intended and should not be considered as providing legal advice or opinion. At ADR Systems, we go to great lengths to ensure our information is accurate. We recommend that you consult an attorney with regard to the use and interpretation of these clauses in the context of your specific business relationship or transaction, and the applicable law.

ADR Systems of America’s commercial alternative dispute resolution clauses may be downloaded in Word or PDF format. For more information on these clauses or any other ADR services, please contact your ADR Systems Case Manager or call 312.960.2260 and ask for a Commercial Services Consultant.

To download a Word document of the complete sample clauses, click here.

To download a PDF of the complete sample clauses, click here.

 

Sample 1: Arbitration Clause and Step Clauses

 

Sample 2: Mediation Clause and Step Clauses

 

“Judge McNamara was instrumental in settling a very difficult and contentious case. Although I disagreed with certain (not all) of Judge McNamara’s legal positions, she expressed her opinions in a way that got my clients to focus on other things besides their dissatisfaction. There was nothing but bad blood between the parties, and Judge McNamara appealed to the better nature of both sides to resolve their differences. These intangibles, plus her experience, social skills, and ability to translate the process to the parties in an understandable way from a judge’s perspective, were all instrumental in settling the case.”

John P. Quall, Esq.
Law Office of John P. Quall