Mediation Clauses in Business Contracts

If you own a business or “do business,” give serious consideration to adding a Mediation Clause to your contracts and agreements.  Nothing fancy, but something that provides a step in your dispute or resolution process that helps to avoid unnecessary litigation.

A simple mediation clause for contracts can be structured in myriad ways.  One form clause for consideration is:

“A party to this Agreement shall not commence legal proceedings against another party to this Agreement for breach or any other legal claim associated with or arising out of this agreement before first bringing the alleged breach or problem to the  other party’s attention in writing and seeking mediation.  If the alleged breach or problem is not  resolved to the parties’ satisfaction or if mediation is not scheduled within ten business days of this written notice, the aggrieved party may then pursue litigation.”

Of course, One Mediation also recommends that a list of preferred vendors for such mediation services be added to the clause, with One Mediation listed.

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