Contract Clauses

It is preferable to have a dispute resolution clause in an agreement before any dispute arises.

You should consult an attorney for legal advice concerning your contractual language.

The following (or similar) suggested language may be suitable for your agreements:

(A) For mediation:
"All disputes arising out of or relating to this agreement shall be submitted to mediation to United ADR (www.united-adr.com) under its rules of mediation."

(B) For arbitration:
"All disputes arising out of or relating to this agreement shall be decided exclusively by binding arbitration by United ADR (www.united-adr.com) under its rules and practice; the parties expressly waive their right to a bench or jury trial, and to being part of a class action; if the parties don't reserve their right to a review under the rules of United-ADR, there is no right of appeal of an arbitration award; an award rendered by a United-ADR arbitration tribunal is enforceable in any court having jurisdiction thereof."
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In real estate related contracts and situations with a heightened likelihood of disputes, parties in California may add the following (others may adapt it to their situation):

Provision (B) shall be clearly titled "ARBITRATION OF DISPUTES."

Immediately before the line or space provided for the parties to indicate their assent or nonassent to the arbitration provision described in subdivision (B) above, and immediately following that arbitration provision, the following shall appear:
"NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE BUSINESS AND PROFESSIONS CODE OR OTHER APPLICABLE LAWS. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY."
"WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF OR RELATED TO THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION."

If the above provision is included in a printed contract, it shall be set out either in at least 10-point Roman boldface type or in contrasting red print in at least 8-point Roman boldface type, and if the provision is included in a typed contract, it shall be set out in capital letters.