Commercial contracts of various types ranging from franchise agreements to sales agreements usually consist of the dispute resolution provision. These provisions generally preside over what happens if there is a dispute popping out of or concerning the agreement.
In respect to this, the dispute resolution section is a contractual agreement on how the two parties can resolve their disagreements or disputes. You can search for the best ADR company in Canada that provides dispute resolution services.
It has been observed from the litigated commercial contracts that parties usually do not pay much attention to the provisions at the times of drafting the contract. When the contract is drafted the parties are usually focused on price and different other major business terms. Further, during the transaction, both sides are usually looking forward to a jointly valuable relationship.
There are basically two major provisions addressed where a dispute will be decided and how the dispute will be decided. The franchise dispute resolutions usually have forum selection clauses also known as a choice of venue.
This provision indicates the court where the case will be managed. It can be easily understood why the choice of venue for such disputes is essential.
Dispute resolution provisions may also comprise provisions that will need the dispute to be decided by the binding arbitration, rather than the court system. In arbitration, the case usually is settled either by a single arbitrator or by the panel of three arbitrators. Arbitrators most characteristically are lawyers with experience in a particular area or could even be non-lawyer industry professionals.