Alternative dispute resolution in the world of commercial disputes

Abstract

Nowadays, many commercial contracts contain, or should contain, an alternative dispute resolution (ADR) provision. Resorting to mediation or arbitration as a precondition to engaging the courts has the potential of saving the parties’ resources. Further, ADR methods provide the parties with important benefits that court-instituted proceedings cannot offer. One of them is full substantive and procedural control over the resolution-seeking process, including the convenience of arranging the meeting or hearing per the parties’ schedules, needs, and preferences. In their article, the authors compare the advantages and drawbacks of ADR processes versus litigation. They also touch upon the technicalities that need to be followed to ensure the enforceability of ADR clauses. By exploring the World Commerce and Contracting (World CC) Principles, the authors’ goal is to bring the practical aspects of ADR methods closer to those who may not be familiar with them and/or who may be skeptical about their efficiency.