The Procurement Glossary » Dispute Resolution

Dispute Resolution

Contracts & Legal

Definition

The contractually agreed process for resolving disagreements — often escalation, then mediation or arbitration, before litigation.

Explanation

A tiered dispute-resolution clause keeps conflicts out of court where possible, saving cost and relationship. It defines governing law, jurisdiction and the steps parties must follow before escalating.

Example

The contract requires senior-level talks, then mediation, before either party may litigate.

Related terms

• Arbitration — A private dispute-resolution process where an independent arbitrator issues a binding decision instead of a court.
• Breach of Contract — A failure by one party to perform an obligation under a contract without a lawful excuse.
• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
• Governing Law — The jurisdiction whose laws will be used to interpret and enforce a contract.

Frequently Asked Questions

What is Dispute Resolution?

The contractually agreed process for resolving disagreements — often escalation, then mediation or arbitration, before litigation. A tiered dispute-resolution clause keeps conflicts out of court where possible, saving cost and relationship. It defines governing law, jurisdiction and the steps parties must follow before escalating.

Can you give an example of Dispute Resolution?

The contract requires senior-level talks, then mediation, before either party may litigate.

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