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Sample Negotiation Clause

The parties agree that, both during and after the performance of the terms of the agreement each of them shall make bona fide efforts to resolve by negotiation any dispute between them.

Negotiation Clause - Two levels of management

In the event of a dispute under this Agreement (a "Dispute"), the party alleging the Dispute shall provide written notice giving particulars of the Dispute to the other party (the "Notice of Dispute"). The parties each agree to appoint a representative and to cause their respective representatives to meet as soon as possible in an effort to resolve the Dispute. Should the Dispute not be resolved within ten (10) Business Days of the Notice of Dispute, representatives of the parties at a senior management level shall attempt, in good faith, to resolve the Dispute in no more than thirty (30) Business Days from the date of the Notice of Dispute. All such representatives of the parties shall be referred to hereafter as "Settlement Nominees", and the thirty (30) Business Day period shall be referred to as the "Period of Discussion".

Stay of proceedings

[A party may not serve a Notice of Dispute or commence court proceedings / an arbitration until {21} days after it has made a request to the other side for negotiations.]


Parties should consider:

  • if there are any disputes which they do not wish to handle by negotiation;
  • preservation of rights under appropriate limitations legislation;
  • time limits within which negotiation is to commence;
  • time limits within which negotiation may be seen to be concluded;
  • if a next stage, such as mediation, is anticipated, whether to include a provision for disclosure, such as:
    • "provide frank, candid and timely disclosure of all relevant facts, information and documents to facilitate those negotiations";
    • if a third party neutral is to be included in the negotiation process;
    • confidentiality of the process;
    • without prejudice nature of the process.

These ADR Clauses have been produced by The Canadian Foundation for Dispute Resolution. Any feedback or concerns on the content of this document please contact CFDR at the addresses below.

The Canadian Foundation for Dispute Resolution
234 Eglinton Avenue East, Suite 500, Toronto, Ontario, M4P 1K5
Tel. (416) 487-4733 Fax. (416) 487-4429



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