AFSA  Mediation Recommended Clause

The following standard clauses have been designed widely to encompass disputes arising in connection with contracts and is recommended as a dispute resolution clause for incorporation in commercial agreements.

DISPUTE RESOLUTION (MED-ARB)

  1. “Should any dispute, disagreement of claim arise between the parties (called hereafter ‘the dispute’), the parties shall try to resolve the dispute by negotiation.  This entails that one party invites the other in writing to a meeting and to attempt to resolve the dispute within seven days from date of the written invitation.
  2. If the dispute has not been resolved by such negotiation within seven days of the written invitation, the dispute shall be submitted to mediation, which shall be administered by the Arbitration Foundation of South Africa (‘AFSA’) in terms of the AFSA Mediation Rules. Any party to this agreement may refer the dispute to mediation.
  3. If the parties are unable to resolve the dispute through mediation, the dispute, if arbitral by law, shall be finally resolved in accordance with the AFSA Commercial Rules.
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