ADR Clauses
Insert the Equa Clauses
To adopt Equa’s online dispute resolution mechanism, we recommend that parties incorporate one of the following dispute resolution clauses in their contract:
Dispute resolution clauses in agreements outline the process and methods for resolving disputes that may arise between parties. These clauses help to provide clarity and a structured approach to addressing conflicts, avoiding costly and time-consuming litigation. Here are some common types of dispute resolution clauses:
Mediation: Parties agree to attempt mediation as the first step in resolving any disputes. Mediation involves a neutral third party facilitating negotiations between the parties to reach a mutually acceptable resolution. If mediation fails, the clause may specify the next step in the dispute resolution process.
Arbitration: Parties agree to submit any disputes to arbitration instead of litigation. Arbitration involves a neutral third party, the arbitrator, who listens to both sides and makes a binding decision. The clause may specify the arbitration rules, the number of arbitrators, and the jurisdiction governing the arbitration process.
Negotiation: Parties commit to engaging in negotiations in good faith to resolve disputes before pursuing other methods. This clause may outline the steps to be taken in negotiation, including timelines and any requirement for formal written notice.
Multi-Tiered Dispute Resolution: This clause incorporates multiple steps for dispute resolution, typically starting with negotiation or mediation and progressing to arbitration or litigation if the previous steps are unsuccessful. It provides a structured approach to resolving disputes, allowing parties to escalate to more formal methods if needed.
Expert Determination: Parties agree to appoint an independent expert to assess and provide a binding decision on specific technical or specialized issues in dispute. This type of clause is commonly used in agreements where there are technical or industry-specific matters that require expert evaluation.
Litigation as a Last Resort: The clause states that parties will resort to litigation only after exhausting all other available dispute resolution methods. This clause may be included to emphasize the preference for alternative dispute resolution processes and encourage parties to explore other avenues before pursuing formal litigation.
It's important to note that the specific terms and language of dispute resolution clauses can vary depending on the nature of the agreement and the preferences of the parties involved. Consulting with a legal professional is advisable to ensure that the dispute resolution clause is tailored to meet the specific needs and requirements of the parties.
Arbitration Clause
Arbitration is a dispute resolution mechanism wherein parties are bound by an award made by the arbitrator. Parties should opt for arbitration if they desire a decision by an independent adjudicator.
Notwithstanding anything to the contrary contained herein, any dispute, controversy or claim arising out of or relating to this contract, including its construction, meaning, scope or validity thereof, shall be settled by arbitration under the Arbitration and Conciliation Act, 1996 administered electronically by ‘Equa’ in accordance with its Dispute Resolution Rules (“Rules”).
The parties consent to carry out the aforesaid proceedings electronically on Equa’s platform (https://www.equa.law/) via the following email addresses _____________________________ <<insert one email ID of the first party>> and _____________________________ <<insert one email ID of the second party>>.
The parties agree that the aforesaid proceedings shall be carried out by a sole arbitrator appointed under the Rules. The juridical seat of arbitration shall be _______, India and the language of arbitration shall be English. The law governing the arbitration proceedings shall be Indian law. The decision of the arbitrator shall be final and binding on the parties.
Mediation Clauses
Mediation is a dispute resolution mechanism wherein parties mutually opt to settle the dispute facilitated by a mediator. Parties should opt for mediation if they desire a negotiated settlement.
Notwithstanding anything to the contrary contained herein, any dispute, controversy or claim arising out of or relating to this contract, including its construction, meaning, scope or validity thereof, shall be settled by mediation administered electronically by Equa in accordance with its Dispute Resolution Rules.
The parties consent to carry out the aforesaid proceedings electronically on Equa’s platform (https://www.equa.law/) via the following email addresses _____________________________ <<insert one email ID of the first party>> and _____________________________ <<insert one email ID of the second party>>.
Med-Arb Clause
Med-Arb is a process wherein a dispute is first referred to mediation, and if it is unsuccessful, the dispute is then is finally settled by arbitration.
Notwithstanding anything to the contrary contained herein, any dispute, controversy or claim arising out of or relating to this contract, including its construction, meaning, scope or validity thereof (“dispute”), shall be settled by mediation administered electronically by Equa in accordance with its Dispute Resolution Rules (“Rules”).
If the aforesaid mediation is unsuccessful, the dispute shall thereafter be finally settled by arbitration under the Arbitration and Conciliation Act, 1996 administered electronically by Equa in accordance with its Rules.
The parties consent to carry out the aforesaid proceedings electronically on Equa’s platform (https://www.equa.law/) via the following email addresses _____________________________ <<insert one email ID of the first party>> and _____________________________ <<insert one email ID of the second party>>.
The parties agree that the electronic arbitration proceedings shall be carried out by a sole arbitrator appointed under the Rules. The juridical seat of arbitration shall be _______, India and the language of arbitration shall be English. The law governing the arbitration proceedings shall be Indian law. The decision of the arbitrator shall be final and binding on the parties.
Take care
The dispute resolution clause should be inserted under the heading “Dispute Resolution” or under a similar section in the contract. Please ensure that there are no conflicting dispute resolution clauses under the heading “Dispute Resolution” or “Arbitration” or under a similar section in the contract. In case the contract is already executed, parties can still opt for Equa’s online dispute resolution mechanism by agreeing to one of the above mechanisms.
The email address provided by each party shall be one which is regularly accessed and which will be used to register on Equa’s platform to receive communications pertaining to a dispute that may arise.
For any queries, write to us at info@vdrc.io or call us on 9928168300.
The Drafting Checklist
Have you considered the scope of the arbitration? All disputes, or select ones?
Is there a delegation of authority to determine arbitrability to arbitrator?
Should it be a sole or tripartite arbitration?
Will this be an institutional arbitration or ad hoc?
What rules will apply? Remember it is critical to clarify which rules will apply.
Have you specified a venue/location of arbitration? Remember caveats for different types of cases.
Did you address special discovery provisions or limitations?
Have you specified governing and procedural law?
Have you specified mediation first? Some cases and/ or business relationships might benefit from mediation before arbitration.
Is there an allocation of fees and costs?
Did you insert language regarding attorney fees clause if necessary?