Well first, try to negotiate a resolution.If that fails, in many instances, alternative dispute resolution (“ADR”) is a powerful way in which to resolve an array of different disputes. Advantages include:

  1. the confidentiality of the process,
  2. often being less formal, and
  3. it is generally faster than litigation.

There are different types of ADR, namely mediation and arbitration.

Arbitration is a “procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.”

In many instances, though debates seem to ensue as a result of whether or not all disputes are referable to arbitration. Especially when these clauses are included in contracts. The arbitration clause if not properly drafted are often severed from any defects from which the main agreement.

Mediation is also a useful mechanism in some instances and is : “a means of resolving disputes outside of the judicial system by voluntary participation in negotiations structured by agreement of the parties and usually conducted under the guidance and supervision of a trained intermediary”

Therefore, in an instance where parties intend all disputes regarding their agreement, including the formation, validity and enforceability of the agreement, be determined by mediation or arbitration. It is imperative, especially for arbitration, that the arbitration agreement and the rules say explicitly so.

PocketAdvisor teaches users to identify and implement about mechanisms to build and maintain various critical relationships that are vital to achieving business success.  In addition, we provide all the relevant legal structures, documents and contracts needed, to avoid disputes. Documents include the relevant ADR clauses in the correct way. For more information please contact us or enrol in one of our programs today!

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Nicolene Schoeman-Louw