This document is an optional clause which can be used in a business sale agreement.
Where parties to a business sale transaction wish to avoid going to court to resolve disputes, it is worthwhile negotiating a mediation process as a method of dispute resolution.
In most instances, it is useful for a mediator to work with the parties to enable them to resolve disputes, instead of relying on a judge to do so. The parties can always proceed to court if the mediation process fails to produce a satisfactory resolution.
Where the parties agree a mediation process, it is necessary to include a dispute resolution clause in the agreement setting out the process for mediation.
Using this precedent
This precedent clause can be used in a sale of business agreement. It can also be inserted as a separate dispute resolution clause into the separate precedents “Business sale agreement – sale of assets (short form)” and “Business sale agreement – sale of shares (short form)”.
When inserting this optional clause into an agreement, care must be taken to ensure that the agreement remains consistent. Cross-references, definitions and schedules should all be checked.
This document has been authored for Lexis Nexis by Elise Margow, Principal, Legally Speaking.
This document is part of a suite of commercial transaction documents prepared with the assistance of Specialist Editor Murray Landis, Partner, K&L Gates.