Pre-dispute ADR Contract Clause Law and Legal Definition

A pre-dispute ADR contract clause is a clause incorporated in the agreement entered between the parties specifying a method for resolving disputes that may arise under that agreement between the parties. Such clause shall refer to one or more ADR techniques and it shall even incorporate the name of the third party who will serve as an arbitrator or mediator on the arising of a dispute.

Inserting a pre-dispute ADR contract clause is one of the best ways to ensure the timely use of ADR in any type of commercial, construction, financial, or employment contract by making a pre-dispute, contractual obligation between the parties.