Dispute settlement is a clause that appears in most economic contracts to provide a settlement direction for the parties when a dispute arises. Accordingly, from this clause, the parties to the contract will resolve disputes by methods such as negotiation, conciliation, arbitration trade, or suing in Court. In the article below, TNTP would like to send readers some contents that businesses need to note about the Dispute Settlement law and the contracting economy.
What is an economic contract
An economic contract s an agreement between the parties on the establishment, change, or termination of civil rights and obligations in production activities, awarding change of goods, provision of services, and other agreements related to business purposes.
Depending on the signatories, economic contracts are expressed in different forms such as verbal, written, or otherwise. other…
What are the terms of dispute resolution?
Dispute settlement is an economic contraction a provision that provides for methods of settlement when a dispute arises. This is a mandatory clause that plays very important and is usually located near the end of the contract.
Accordingly, in this clause, the parties will agree on methods of dispute settlement such as:
- Mediation between the parties.
- Dispute resolution in Commercial Arbitration; or
- Sue in Court.
What should enterprises pay attention to about the Dispute Resolution clause in economic contracts?
In practice when signing economic cracks instead of focusing too much on ute settlement provisions, the pares often focus on the scope of micro-work, price, duration of work, payment method, and payment term.
In addition, due to unforeseen reasons, disputes will arise, so when drafting and signing contracts, the parties often consider slight dispute resolution clauses When a dispute arises, the parties review this clause, but the contract is not specified, leading to many difficulties for the parties in the process of resolving disputes.
Therefore, to limit the above-mentioned issues, when signing economic contracts, the parties need to focus on developing dispute settlement clauses handicap. At the same time, the following should be noted:
Firstly, in the contract, it should be clearly shown that when a dispute occurs, what dispute resolution method do the parties apply?
Second, the parties need to agree on the priority order of dispute resolution methods. For example, the parties can agree to prioritize the method of resolving disputes by negotiation and conciliation.
Thirdly, in case the dispute settlement method is the Arbitration Center, it is necessary to determine which arbitral institution, location, and classification set the costs, and commitments of the parties, …
Can enterprises agree to choose both commercial arbitration and dispute resolution courts?
It is common for the parties to both agree to settle disputes at the Arbitration Center and resolve disputes at the Court. However, is this agreement by law? And if a dispute arises, one party initiates a lawsuit to the Court, the other party requests commercial arbitration to settle, and the jurisdiction belongs to the agency which mandarin?
The above-mentioned issues have been prescribed by lawmakers so that they can be applied in practice in the most reasonable way. Accordingly, the terms of dispute settlement in economic contracts are agreed upon by the parties. Including both methods of dispute resolution by Commerce Arbitration and Courts in the dispute resolution clause is contrary to the statutory provisions of the law.
In case one party initiates a lawsuit to the Court, and the other party requests arbitration to settle, the law provides for priority in commercial arbitration. If one of the parties requests the Court to solve the dispute, then immediately after receiving the petition, the Court must determine whether one of the parties has requested arbitration or not. If the disputing parties have an arbitration agreement, the Court must refuse to accept the case, unless the arbitration agreement is invalid or the arbitration agreement cannot be implemented (Article 6 of the Law on Commercial Arbitration 2010).
Above is the content of the article “Dispute settlement clauses in economic contracts and notes for the parties” TNTP sent to readers. Hope the above sharing is useful to readers.