Mediation can settle Contract Conflict

Contracts are entered into daily in various formats, from bank loans, deeds of sale and employment contracts to rental agreements to name but a few.

The contracts you so willingly sign are filled with many clauses of varying description, but do you realise what you are writing your signature down on? Contracts are seldom read and fully understood by the signatory.

Afford yourself the time to do due diligence – below is an example of a clause often overlooked or omitted.

Clause reference; Disputes: (ADR) alternate dispute resolution.

 The process to be followed if either the parties notifies the other in writing, a dispute exists and the nature thereof. The said clause is to cover the existing period of the agreement and any renewal or extension thereof.

The parties on receipt of said notice the parties shall within a specific time frame ie.10 (ten) working days agree to instruct their representatives or personally attempt to resolve the dispute amicably by negotiation failing this to within a prescribed time (15 working days) refer the matter for resolution by way of mediation.

In the event that the mediation process does not reach a mutually acceptable resolution of the dispute the parties agree to refer the matter to arbitration. The parties agree to be bound by the ruling of the said arbitrator.  The time frames allocated to the set agreed procedures may be mutually altered in writing by the parties.

By including the above mentioned clause one is more likely to avoid:

(           (a)   A decision taken on the matter by an external third party ie Law society representative.

            (b)   Parties agree by default to proceed to litigation.

Mediation then becomes a proactive arena for parties seeking to end disputes or conflict by mutual agreement expeditiously.

Looking for professional, reliable mediation services at an affordable price? Contact Cape Mediators today!