dispute resolution clause - standard contract

A typical clause in a standard contract. The clause is a good example of the use of alternative dispute resolution methods in lieu of court proceedings.

If any dispute arises between the parties to the Contract in respect of or in connection with the Contract (including the validity, breach or termination of it), the parties must, without prejudice to any other right or entitlement they may have, explore whether the dispute can be resolved by agreement between them using informal dispute resolution techniques such as negotiation, mediation, independent expert appraisal or any other alternative dispute resolution technique. The rules governing any such technique adopted will be as agreed taking into account any procedures and guidelines issued or recommended by the Law Society of the ACT.

If the dispute is not resolved by such agreement within fourteen (14) days of notice by one party to the other of the dispute (or such further period agreed in writing between parties), either party may refer the dispute to arbitration. The arbitrator must be agreed between the parties within 10 days of notice of the referral by the referring party to the other, or failing agreement appointed by the President of the Law Society. In either case, the arbitrator must not be a person who has participated in an informal dispute resolution procedure in respect of the dispute.