{"id":184614,"date":"2023-11-30T06:00:13","date_gmt":"2023-11-30T06:00:13","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=184614"},"modified":"2025-06-11T07:29:32","modified_gmt":"2025-06-11T06:29:32","slug":"benefits-agreed-dispute-resolution-process","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/benefits-agreed-dispute-resolution-process\/","title":{"rendered":"Why Should You Agree to a Dispute Resolution Process With Your Customers?\u00a0"},"content":{"rendered":"\n

When negotiating commercial agreements with your customers, there are various risk issues to consider for both contracting parties. One of these risk issues is what happens if there is a dispute between the parties. Agreeing to a dispute resolution process<\/a> with your customer can protect your business in various ways. This article will explore why your business should have an agreed dispute resolution process with your customers.<\/p>\n\n\n\n

Why Is It Important to Have a Customer Contract?<\/h2>\n\n\n\n

As a trading business supplying products or services, you should always enter into a contract with your customer. A contract is a commercial agreement<\/a> that records the terms under which parties will do business.<\/p>\n\n\n\n

A customer contract is also a vital legal document to protect your business when things go wrong. Trading without a legally binding agreement means exposing your business to high risk and many possible problems later down the line.<\/p>\n\n\n\n

Where you are negotiating a bespoke contract with your customer (and not trading on your standard terms), various points will be explored. You are likely to discuss and negotiate various different commercial and legal terms in your contract with your customers.<\/p>\n\n\n\n

One of the key terms you should consider including in your contract is a dispute resolution procedure, setting out how you will resolve any disputes that arise. Including an effective dispute resolution process will help protect your business from risk, as explored below.<\/p>\n\n\n\n

When Should You Agree on a Process for Resolving Disputes With Your Customer?<\/h2>\n\n\n\n

Whilst having the best intentions, sometimes challenges and problems arise during a contractual relationship. Therefore, you should agree to a process for resolving disputes as part of your commercial negotiations.<\/p>\n\n\n\n

You should document your process by including a robust dispute resolution clause in your contract which explains what the parties must do if a dispute arises.<\/p>\n\n\n\n

You will need to carefully consider which dispute resolution process is appropriate for your contract. Depending on the type of project and risks involved, you should discuss with your customer and determine which dispute resolution options will be best for your project.<\/p>\n\n\n\n

Commercial parties often fail to consider these issues at the start of their relationship. However, it is vital to consider the advantages and disadvantages of different ways to resolve disputes and which methods would be most effective in the context. For example, you should consider whether mediation would be a valuable option to help you and your customer to resolve disputes.<\/p>\n\n\n\n

If you need support negotiating a dispute resolution process, you can work with an experienced commercial lawyer to guide you.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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