Dispute Resolution Mechanisms

Amicable settlement can not be the only avenue available to the parties to the contract. The amicable settlement is always the first step parties take in case of occurence of a dispute. In the event that fails they go to a serious forum such as the court or arbitrator who finally delivers a decision binding and enforceable against the lossing party.

For sure the parts have to look on the nature of their relationship before deciding dispute resolution mechanisms to be included in the contract at the negotiation stage.

This will increase efficiency in time disputes occur. for example, if the two companies operate under arms-length relationship, the room for amicable mechanisms is usually minimized because trust between two parts is solely invested in the contract itself.

Thanks,

Sebastian.

The three level stated in the PPRA standard contracts includes courts.

Amicable settlement this means parties meeting friendly and discuss their problem. This is mainly informal.

Adjudication this means going to the court of law such as the High court , Distrcict court etc according to the value of the subject matter and the area of occurence.

Arbitration means an alterbnative dispute resolution that entails the use of registered arbitrators.

Thanks

RJM + Ramadhan,

Everything will depend on what is provided in the contract. For any dispute arising out of a contract, the courts of law will always make reference to the contract to ensure that the parties implement its terms thereof. Therefore if the dispute resolution method provided is amicable settlement followed by adjudication and later arbitration, the courts will ensure that the provided dispute resolution method is exhausted before they can go to the court.

So if you refer the matter to the court before exhausting the provided dispute resolution procedure, the court will direct you to follow the procedure provided in the contract. It is the duty of the court to ensure that parties implement the contract in the manner in which they agreed, which is exhibitted by the signed contract between the parties.

RJM,

to my understand these three options to resettle disputes are there, and either of the part may opt to use one of the mechanism depending to the magnitude of the problem.

I submit.

Mkangala,RMA