Puerto Rico Private Dispute Resolution Clause

State:
Multi-State
Control #:
US-TS10042B
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Description

This form is a Private Dispute Resolution Clause usable to compel negotiation and mediation prior to arbitration or litigation in contracts where licensing, patents, or commercial trade secrets are a factor.

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FAQ

Puerto Rico is an unincorporated territory of the United States. Most but not all federal laws apply to Puerto Rico. In addition to the U.S. Constitution, which is the supreme law of the U.S., federal laws include statutes that are periodically codified in the U.S. Code.

The clause should be precise and clearly drafted. If appropriate, it should comprehensively set out each party's obligations during the intended ADR process and confirm their unequivocal commitment that the process must be exhausted before litigation or arbitration is pursued.

?Any dispute, controversy or claim arising under, out of or relating to this contract and any subsequent amendments of this contract, including, without limitation, its formation, validity, binding effect, interpretation, performance, breach or termination, as well as non-contractual claims, shall be submitted to ...

The parties agree that any claim or dispute relating to this agreement, as well as any other matters, disputes, or claims between them, shall first be Mediated and/or Arbitrated in an attempt to resolve any and all issues. Initially, the parties agree to consider mediating the dispute.

Overview. Alternative Dispute Resolution ("ADR") refers to any means of settling disputes outside of the courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration.

Mandatory arbitration clauses usually declare that the parties will not litigate their legal problems if a dispute occurs over the contract, such as a breach of contract or business dispute. Instead, the parties agree to arbitration to resolve the dispute.

What is Pre-Dispute Arbitration? Arbitration is a legal process in which a dispute is settled by one or more arbitrators who decide the outcome instead of a jury made up of members of the community. ?Pre-dispute? arbitration means that the consumer must agree to arbitration before any dispute arises.

A dispute resolution clause should detail all the aspects of a dispute and how it should be resolved. For example including the fact that ADR should be attempted in the first instance. It should also cover how an agreed resolution will be enforced, and how any costs which may be incurred will be apportioned.

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Puerto Rico Private Dispute Resolution Clause