Dispute resolution clauses and reasonable endeavours obligations

By Dr Gerry Bean and Dylan Burke

This article aims to provide some useful contract drafting tips in the context of dispute resolution clauses, and clauses requiring parties to use best or reasonable endeavours. This article builds on lessons learned from recent cases in those areas, and provides a practical list of matters that should be considered when drafting or reviewing relevant clauses.

Dispute resolution clauses recently came under the spotlight in the case of WTE Co-Generation v RCR Energy Pty Ltd [2013] VSC 314. This case served as a useful reminder of the need for a dispute resolution clause to set out the process or model to be employed by the parties in resolving disputes, and to do so in a manner that does not leave this to further agreement. 

Also a key point that was reinforced by Vickery J in WTE Co-Generation v RCR Energy Pty Ltd [2013] VSC 314 is that it is imperative to always ensure that a dispute resolution clause is sufficiently certain so as to be enforceable. Outlined below are our top tips to keep in mind when drafting or reviewing dispute resolution clauses…

Click on the link below to read the rest of the DLA Piper briefing.

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