Model Clauses

Mediation only

In the event of any dispute arises out of or relates to this contract, or the breach thereof, the parties agree first to try in good faith to settle the dispute by mediation administered by the ‘Bhutan ADR Centre, in accordance with their Mediation Rules (“BADRC Mediation Rules”) for the time being in force, before resorting to arbitration, litigation, or some other dispute resolution procedure.

The Mediation shall consist of sole/ _____ numbers of Mediators. The seat of Mediation shall be _________. The Language of the Mediation shall be _________. The mediation process and settlement Agreement, if any, shall be governed by, construed and take effect in accordance with the substantive law of __________ .

Mediation and arbitration

In the event of a dispute arising out of or relating to this contract, including any question regarding its existence, validity or termination, the parties shall first seek settlement of that dispute by mediation in accordance with the Bhutan ADR Rules, which Rules are deemed to be incorporated by reference into this clause.

If the dispute is not settled by mediation within [ …….] days of the commencement of the mediation, or such further period as the parties shall agree in writing, the dispute shall be referred to and finally resolved by arbitration under the BADRC Arbitration Rules, which Rules are deemed to be incorporated by reference into this clause.

The language to be used in the mediation and in the arbitration shall be [ ]. The governing law of the contract shall be the substantive law of [ ]. In any arbitration commenced pursuant to this clause;

• the number of arbitrators shall be [one/three]; and
• the seat, or legal place, of arbitration shall be [City and/or Country].”