The word “shall” is often used in legal documents to indicate a mandatory action. When “shall” is used in a dispute resolution clause, it creates a binding obligation on the parties to follow the specified procedure.
For example:
Mediation Clause: “Any dispute arising out of or in connection with this contract shall be submitted to mediation in accordance with the mediation rules of [specific mediation organization].”
Arbitration Clause: “Any dispute arising out of or in connection with this contract shall be finally adjudicated by arbitration under the rules of [specific arbitration institution].”
Jurisdiction Clause: “Any disputes arising out of or in connection with this contract shall be subject to the exclusive jurisdiction of the courts of [specified jurisdiction].”
Using “shall” in these clauses indicates that the parties are required to engage in mediation, arbitration, or litigation in the specified manner, making it clear that the process is not optional.
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