Dispute Resolution

Dispute Resolution is a core clause in international trade contracts, referring to the mechanisms used when the buyer and seller have disagreements arising from contract performance (such as quality, delivery, payment, etc.). Common methods include negotiation, mediation, arbitration, and litigation. It is typically used in the 'dispute resolution clause' of a contract, specifying the governing law, arbitration institution (e.g., CIETAC, ICC), or court. Precautions: prioritize arbitration due to its cross-border enforcement convenience (New York Convention); clearly specify the place of arbitration, language, and rules; avoid 'arbitration or litigation' clauses that may render the clause invalid. Unlike 'force majeure,' which exempts liability, dispute resolution addresses disputes that have already occurred; unlike 'applicable law,' which determines the governing law, dispute resolution focuses on procedure. Foreign trade practitioners should consider the laws of the counterparty's country, choose a neutral third-country arbitration, and pay attention to time limits and evidence preservation.