Using Dispute Resolution Clause Efficiently in Managing Commercial Contract Cases

Abstract

Nowadays, parties generally prefer more efficient and cost-effective dispute resolution mechanisms in resolving commercial disputes. Thus, the shift from adversarial litigation to non-adversarial types of dispute resolution. The main objective of this article is to study the use of a dispute resolution clause in contracts in regulating the way of resolving commercial disputes. The specific objectives of this study are to identify the main content of a dispute resolution clause and to analyze the effects of invoking a dispute resolution clause at the pre-litigation and the initial litigation stages. This study is grounded in doctrinal legal research. The researcher obtained primary and secondary sources via the library and later analyzed them using critical and analytical approaches. This study mainly finds that efficient use of a well-drafted dispute resolution clause may produce intended results with time-saving and effort at the pre-litigation and early litigation stages. This study is significant for promoting non-adversarial dispute resolution mechanisms in resolving issues in commercial and non-commercial contracts via a dispute resolution clause and a multi-tiered dispute resolution clause.