ADR Clauses in Commercial Contracts
Overview
Although litigation remains the primary route for dispute resolution within the Kingdom of Bahrain, alternative dispute resolution (ADR) methods continue to be increasingly utilised. ADR clauses serve the purpose of establishing the process to be followed in case of a dispute, whether through litigation or alternative methods. These clauses determine whether litigation is the sole means of resolution or if the parties prefer to include requirements for alternative methods such as arbitration or mediation before initiating legal proceedings. Well-drafted dispute resolution clauses can assist parties in reaching a resolution without incurring additional losses and costs when disputes arise and contracting parties may agree that these mutually agreed terms and conditions are in accordance with the laws of the Kingdom of Bahrain. This Practice Note considers ADR clauses in commercial contracts and more specifically in the Kingdom of Bahrain.