DISPUTE RESOLUTION AGREEMENT I. PURPOSE It is our objective to establish procedures to facilitate the informal and inexpensive resolution of any disputes arising under this contract by mutual cooperation and without resort to outside counsel and litigation. To accomplish this objective, we agree that all disputes arising under this contract will be resolved by submission to binding arbitration. The parties agree that arbitration must be initiated within one year after the claimed breach occurs and that the failure to initiate arbitration within the one-year period constitutes an absolute bar to the institution of any proceedings. The parties further agree that, before the initiation of arbitration proceedings, the following two steps must be taken and are a condition precedent to institution of arbitration proceedings: (1) meet and discuss and (2) settlement conference. II. MANDATORY PREARBITRATION ATTEMPTS TO SETTLE DISPUTES A. Meet and Discuss (Party-Only Negotiation) 1. The initiating party must write a description of the alleged breach of contract and send it to the responding party by certified or registered mail. This letter must explain the nature of the complaint and refer to the relevant sections of the contract on which the complaint is based. The initiating party must also set forth a proposed solution to the problem, including a specific time frame within which the parties must act. 2. The recipient of the above letter must respond in writing within ten days with an explanation, including references to the relevant parts of the contract and a response to the proposed solution. 3. Within ten days after receipt of this response, the parties must meet and discuss options for resolving the dispute. The initiating party must schedule this resolution meeting. 4. The first three steps to resolve contractual disputes are to be taken by the parties themselves and without the participation of legal counsel. If, however, the parties are unable to reach an agreement at the resolution meeting, lawyers are allowed, but not required, to participate in a settlement conference. B. Settlement Conference (Third Party Mediation) 1. A settlement conference must be held within 30 days after an unsuccessful resolution meeting. The initiating party must contact ___[insert name of alternative dispute resolution (ADR) service agreed on by the parties]___ to schedule the conference. 2. If the dispute is not otherwise resolved, the parties agree to submit the dispute for binding arbitration under the following terms and conditions. III. ARBITRATION A. Demand The aggrieved party may initiate arbitration by sending written notice of an intention to arbitrate by registered or certified mail to all parties and to the arbitrator. The notice must contain a description of the dispute, the amount involved, and the remedy sought.
Return to Table of Contents for
Legal Forms : Set Two