Generally, dispute occurs in your contracts due to several reasons beyond the control of the parties. A contract execution means executing the project on paper, always the contract to be executed with complete project execution details along with the solutions for the problems that may be foreseen during contracts execution.
If there are problems that may arise while executing your contract, the same can be resolved by invoking the clauses in your contract.
If the parties take appropriate measures as mentioned in pre contracts support and contracts management support, there is every chance that parties may not arrive to dispute stage. If the appropriate clauses are not mentioned in your contract for resolving the dispute, always suggest settling the dispute amicably.
If the dispute arises, the actual dispute to be clearly mentioned in the dispute invocation letter and if required in consultation with your contracts and legal experts substantiate the dispute with supporting documents and to cite the details of the breaches done by either party in your contract.
LET US EXAMINE THE ROOT CAUSES FOR DISPUTE:
- A Clear understanding of the scope of work by the parties is essential for the successful performance of a contract. There is every chance of dispute if the scope of work is not mentioned in detail.
- Appropriate planning to detail is another important factor for successful execution of a contract. If there is a lack of planning this may lead to losses and to a dispute.
- Delays by either party on account of several reasons lead to losses and disputes.
- Change in Law, Price Variation, Force Majeure Events and unforeseen circumstances will be one of the reasons for an increase in costs for parties and may be one of the root causes of a dispute.
INTRODUCTION ON ARBITRATION:
- As per Section 7 of the Arbitration and Conciliation Act, 1996: “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. An arbitration agreement may in the form of an arbitration clause in a contract or in the form of a separate agreement. An arbitration agreement shall be in writing.
- When two persons enter into the contract and agree that their differences if any to be settled through Arbitration and Conciliation Act, 1996 and mentioned their intention in Arbitration clause in their agreement for enabling them to conduct the Arbitration proceedings.
- What they really mean is that the actual decision of the dispute will rest with the third person called an arbitrator. Judgment is called an Award.
- Parties to the contract are bound by that award. The award is a decision of theArbitrator given judicially on a reference made to him. Reference plays a major role in validating the award.
- When the Arbitrators award is not within the purview of the reference the award is not valid and can be challenged, though the chances of challenging the award are limited.
- An award need not be a reasoned judicial decision but it should be an intelligible decision which determines rights of the parties in relation to the separate matter of reference. This aspect needs to be scrutinized by experts in the field of arbitration matters.
- An Award speaks by itself, it cannot be interpreted or vary or contradicted by extrinsic evidence. However, an expert can bring out the variances in case Award has to be challenged.
- An Award is not vitiated for failure to give reasons.
- An Arbitrator is bound to give reasons when the reference so requires. When he fails to do so Award is vitiated.
- An Appeal against an award passed by an Arbitrator can be filed under Section 34 of Arbitration & Conciliation Act, 1996 but with limited scope.
WHAT JUSTACONTRACT.COM DOES IN DISPUTE ARBITRATION MANAGEMENT SUPPORT?
- JUSTACONTRACT.COM will carefully in detail examine all the documents to identify the root causes of the dispute.
- Review the contract terms and conditions and make a summary of those terms and conditions.
- Examine in detail the correspondence exchanged by the parties, invoice documents, other relevant documents that are being used in the contract execution.
- Provide a risk assessment plan along with solutions as available as per your contract and the Law.
- Support you in generating appropriate correspondence with substantial evidence on the issues and develop claim statement and support in submitting the claims to the other party as per contractual clauses and Initiate necessary measures to for having a claim settlement meeting between the parties and support them to settle the claim amicably.
- If the claim is not settled amicably by the parties, support such party for submitting the dispute invocation notice as per the contractual clauses.
- After dispute invocation, support the parties for having dispute settlement meetings and settle the dispute amicably.
- If there are any interim measures that are required as per the situations and circumstances in the project, provide support to the party for filing Section 9 application under Arbitration and Conciliation Act, 1996 for interim relief in the appropriate courts with the support of the Advocates.
- Provide support for appointing the Arbitral Tribunal, conducting the arbitration proceedings and also for execution of the Award as required.