Many contracts contain Dispute resolution clauses. Sometimes these are straightforward clauses simply providing for litigation or perhaps Arbitration (and sometimes also dealing with jurisdiction and applicable law). However, it is possible to include a dispute resolution clause which provides an alternative to this by setting out other forms of Alternative dispute resolution (ADR) to be followed in the event of a dispute. These are sometimes identified as ADR clauses.

Parties have several options open to them (see list below), but it is important to understand the consequences of your drafting decisions. This Practice Note considers some of the clause options available and assess some of the issues in relation to each type of clause.

The types of dispute resolution clause considered in this Practice Note are:

1. •

   litigation only clauses

2. •

   mediation clauses

3. •

   multi-tier clauses (escalation clauses)

4. •

   hybrid clauses, and

5. •

   carve-out clauses

For guidance on the key issues as to the enforceability of dispute resolution clauses and challenging jurisdiction (including applying to stay proceedings) where proceedings