Based on independent research, 1 in 3 dispute resolution clauses in contracts are found to be unfit for purpose. Furthermore, companies are spending almost EUR 100,000 in fixing unfit dispute resolution clauses. Baker McKenzie’s Disputes Clause Finder provides users with individually tailored choice-of-court or arbitration clauses in a few steps.

"Pathological" clauses

By asking a few questions, the tool helps users identify the dispute resolution clause that best fits their needs. “Rushing the overall drafting process and the important decisions required to make in its course can easily result in a clause that is unfit for purpose,” said Heiko Haller, a partner in Baker McKenzie’s Dusseldorf office. “In response to this, we have developed this user-friendly and effective tool.” The firm says clients are enthusiastic about the tool, “The biggest advantage of using the tool is that it gives my in-house clients the reassurance that they have a valid disputes clause in their contracts,” said a client. “I see in practice many disputes clauses which are pathological.” Another senior counsel described the tool as “user friendly and very explicative, suiting perfectly practitioners who are not very familiar with arbitration.“

Three easy steps

To use, “It only takes up to two minutes to complete the Disputes Clause Finder,” said Senior Associate Markus Altenkirch, one of the pioneers of the tool. It can be used in three easy steps. Step one, go to www.disputesclause.com. Step two, answer a short set of questions about the contract. Step three, receive your bespoke dispute resolution clause, ready to insert into your contract. “Legal tech is constantly evolving and the Firm is always on the watch for new possibilities,” said Senior Associate Tobias Höfling. “From the early days the working group started exploring the Disputes Clause Finder, the goal has always been to help make things more convenient for our clients.”