Study of Validity, Nature and Effects of the Multi-Tiered Dispute ‎Resolution Clauses According to International Case Law

The parties of the contract may agree on multi-tiered dispute resolution clauses. These clauses are usually negotiation, conciliation, mediation, or expert. The purpose of parties is to try to settle the disputes amicably before commencement of arbitration proceeding and avoid the costly process of arbitration, and strengthen their business-relationship. This article discusses about the validity, legal views about the nature of the multi-tiered dispute resolution clauses, its impact on jurisdiction of arbitration. There are three views about the nature of these clauses: Jurisdictional, Admissibility, Procedural. What the parties have stated in their contract indicates their intention. The nature of these clauses are closely linked to the parties’ intention at the time of their conclusion. The intent of the parties and the manner of arrangement of the clauses in the light of the applicable law, will determine the effect of these clauses on the jurisdiction of the arbitrator.