I believe many people know that the parties to the contract can agree at the outset on dispute resolution methods such as arbitration or mediation to settle contract disputes faster.
But during COVID-19 pandemic time, it is either difficult or impossible to hold in-person cross-border arbitration or mediations sessions. Carrying out dispute resolution processes remotely will help resolve disputes more efficiently and cost-effectively. Contracting parties should therefore seriously consider including the following terms when drafting an alternative dispute resolution clause which recognizes dispute resolution to perform remotely:
- Conditions which trigger remote proceedings, e.g. COVID-19 pandemic
- Recognition of remote proceedings as an valid form of dispute resolution process, and remote procedure shall not constitute grounds for challenging the enforceability and binding effect of the result of the dispute resolution proceedings
- Postponement of alternative dispute resolution proceedings should participants are required to be hospitalized or quarantined according to laws
- Right of the arbitrator and mediator to grant order and make arrangement as appropriate
The best way to draft an effective cross-border contract is, of course, to consult a lawyer.
