Set terms to resolve a dispute: Alternative Dispute Resolution (ADR) Agreement
What is an Alternative Dispute Resolution (ADR) Agreement?
An Alternative Dispute Resolution (ADR) Agreement is a legal agreement between two or more parties that outlines how disputes will be resolved outside of court. ADR methods can include mediation, arbitration, or other agreed-upon processes designed to help parties resolve disagreements efficiently and cost-effectively.
By agreeing to ADR, parties can avoid the time, expense, and complexity of traditional litigation while working toward a fair resolution. Many ADR agreements specify the process that will be used—such as mediation first, followed by arbitration if necessary—and establish guidelines for how disputes will be handled.
When to use an Alternative Dispute Resolution (ADR) Agreement:
- You want to set clear expectations for resolving disputes without going to court.
- You are entering a business relationship and want to define how disagreements will be handled.
- You want to reduce legal costs and resolve disputes more quickly.
- You want to allow mediation or arbitration as an alternative to litigation.
How do I get my Alternative Dispute Resolution (ADR) Agreement reviewed?
If you already have an Alternative Dispute Resolution (ADR) Agreement and want to have it reviewed, or if you have questions about creating or using one, there are a few ways to get help.
Use Rocket Copilot to ask questions or review your document; this helps you better understand what it says and identify anything that may need a closer look.
If you are looking for help from a Legal Pro, you can also ask a question and receive a response within one business day, or request a more in-depth document review.
Sample Alternative Dispute Resolution (ADR) Agreement
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Mediation Agreement
This Dispute Resolution Agreement ("Agreement") is made on __________, by and between __________ of __________, __________, __________ __________ ("First Party") and __________ of __________, __________, __________ __________ ("Second Party").
WHEREAS, the business relationship between the parties commenced __________ as defined in the original business contract, namely __________, which is attached and incorporated herein;
AND WHEREAS the parties herein recognize that disputes and differences may arise between the parties;
AND WHEREAS the parties agree it is in their best interest to appoint an impartial mediator to resolve such disputes as they arise;
AND WHEREAS disputes and differences have arisen between the parties.
The parties hereto agree to refer the following matters and responsibilities to the Mediator:
The Mediator shall direct the parties to file statements of their respective claims, legal submissions, and reliefs claimed. Each party will file statements of defense in reply to the statements of claim of others. The Mediator shall allow the parties to produce documents in support of their claims.
Any decision or award resulting from any such mediation shall be issued in writing, and the mediator shall be mutually selected pursuant to the rules of the American Arbitration Association.
The Mediator shall allow the parties to be represented by their respective advocates, who have the authority to consummate a settlement. Any party may participate without representation (pro se).
Mediation sessions and related mediation communications are private proceedings. The parties and their representatives may attend mediation sessions. Other persons may attend only with the permission of the parties and with the consent of the Mediator.
Costs and Expenses. Each party will pay its own costs and expenses of the mediation unless the parties agree otherwise. The expenses of participants for either side shall be paid by the party requesting the attendance of such participants.
Confidentiality. The parties agree that all aspects of the mediation, and anything arising directly or indirectly therefrom, are strictly confidential and will not be disclosed to any third party except as required by law.
Amendment. This Agreement may be modified, amended, or supplemented only if the changes are made in writing and signed by all parties.
Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the subject matter contained herein. No other promises, warranties, representations, agreements, or understandings, whether oral or written, exist concerning this subject matter. This Agreement supersedes any previous or simultaneous oral or written promises, warranties, representations, agreements, or conditions between the parties.
Severability. If any provision of this Agreement shall be held to be invalid, illegal, or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid, illegal, or unenforceable, but that by limiting such provision, it will become valid, legal, and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
Governing Law. This Agreement shall be governed by the laws of __________.
Signatories. This Agreement shall be signed by __________ and by __________ and effective as of the first date written above.
The First Party:
Date
__________
The Second Party:
__________
Date
