Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) methods, particularly mediation and arbitration, have proven to be essential tools in the prevention and settlement of international commercial disputes, without the formalities, delay, expense, and vexation of ordinary litigation. Making these tools more widely available and better understood helps create a favorable environment for foreign trade and investment. The project Promotion of International Commercial Arbitration and Other ADR Techniques in MEDA Countries has this as its goal.
The following is a more detailed description of the ADR methods focused on in the project:
Arbitration
Arbitration, the most traditional form of private dispute resolution, is a binding procedure in which a neutral or a several-member panel of neutrals, an arbitrator or arbitration panel respectively, considers the facts and arguments presented by the parties and utilizes an agreed upon body of rules and procedure to render a decision.
Mediation
Mediation is a process whereby the parties, with the assistance of a third party neutral (the mediator), together identify disputed issues, consider potential solutions, discuss possible avenues to amicable resolution of those issues, and work to reach an agreement they can live with.
Pro-forma Contracts
These contracts are one way to facilitate new agreements between firms and reduce disputes during execution of a business transaction. Providing standard model contract clauses for many common situations increases confidence among negotiators that they will get what they are bargaining for. These clauses will also provide guidelines for negotiating parties and contract drafters to allow the clauses to be easily adapted to the needs of each particular transaction.