Alternative Dispute Resolution (ADR) has become more popular as a means of resolving disputes between parties, without resorting to litigation. This method involves the use of an unbiased third party to help parties resolve their disagreement. One of the most commonly used ADR models is the CEDR Model ADR Contract Clauses.
CEDR Model ADR Contract Clauses:
The CEDR Model ADR Contract Clauses are a set of suggested clauses that can be included in a contract to provide for ADR. These clauses are based on the principles of the Centre for Effective Dispute Resolution (CEDR), one of the leading ADR service providers in Europe.
The clauses cover three main areas of ADR: mediation, expert determination, and early neutral evaluation. The mediation clause provides for the appointment of a mediator to assist the parties in resolving their dispute. The expert determination clause provides for the appointment of an expert to make a binding decision on a technical matter. The early neutral evaluation clause provides for the appointment of an impartial third party to give an opinion on the merits of a case.
Benefits of using CEDR Model ADR Contract Clauses:
The use of CEDR Model ADR Contract Clauses can offer a range of benefits to parties involved in a dispute. These benefits include:
1. A quicker and more cost-effective resolution of disputes.
2. A more flexible and less adversarial approach to dispute resolution.
3. The opportunity for parties to maintain a positive relationship after a dispute has been resolved.
4. The ability to avoid a protracted and expensive court battle.
5. The potential to preserve confidentiality in relation to the dispute.
The CEDR Model ADR Contract Clauses offer parties a practical and effective way to incorporate ADR into their contracts. By including these clauses, parties can ensure that they have a clear and effective mechanism for resolving disputes that arise under the contract. This can help to avoid costly and time-consuming litigation, while also promoting a more positive and constructive approach to dispute resolution.