Dispute Resolution - From A Multi-jurisdictional Perspective

If potentially contentious issues are governed by predictable rules and effective dispute resolution mechanisms, there is far greater possibility of avoiding litigation or arbitration and achieving reasonable, costefficient results

- Shweta Bharti

A clear and unambiguous contract/agreement document is the foundation for minimization of conflicts and disputes. In fact, drafting of the contract/agreement is the first foundation step for “dispute management”. In that regard, the dispute resolution clause usually incorporates the process of amicable negotiation/settlement before setting the “dispute resolution” process in motion. If potentially contentious issues are governed by predictable rules and effective dispute resolution mechanisms, there is a far greater possibility of avoiding litigation or arbitration, and achieving reasonable and cost-efficient results.

A, a company incorporated under German law, enters into a Master Umbrella Agreement with B, a company incorporated under Indian law, and C, a company incorporated under US law. The transaction also includes entering into various supplementary Agreements between A, B and C in which they govern the German documents by German Law, US documents by New York law, and Indian transaction documents by Indian law, with the courts of Chennai having jurisdiction in the event of a dispute. Evidently there are complex manifold transactions, and thus arises the need for a well-constructed, enforceable Dispute Resolution Clause. A contract or agreement entered into between parties in relation to a transaction, reflects intention of the parties towards discharging their respective obligations for enabling respective parties claim their respective consideration agreed upon under the contract.