An Independent Contractor Agreement defines engagement terms for non-employee service providers. This playbook guides drafting on scope of work, ownership of deliverables, and classification risk mitigation.
Why This Matters: A predetermined dispute resolution process reduces litigation costs, avoids jurisdictional surprises, and encourages timely resolution of conflicts.
Negotiation strategy
If you're the Company:
The Company should ensure that the dispute resolution process aligns with its business interests and risk tolerance. It is advisable to include clear escalation steps and specify preferred jurisdictions to avoid unexpected legal challenges.
If you're the Contractor:
The Contractor should negotiate for a dispute resolution process that minimizes costs and time. Consider proposing mediation as a mandatory step before arbitration or litigation to encourage early settlement.
Essential elements
1
Negotiation Process
Initial step for dispute resolution.
2
Mediation Requirement
Mandatory mediation before arbitration.
3
Arbitration Agreement
Binding arbitration terms.
Action framework
ACCEPT
Propose edits if the jurisdiction or escalation steps do not align with company preferences.
EDIT
Reject if the clause imposes unfavorable jurisdiction or lacks clear resolution steps.
ADD
Add if the clause is missing mediation or arbitration steps.
PRO TIP
Always specify the jurisdiction and venue to avoid unexpected legal challenges.
Example clauses
FAVORABLE
Preferred Clause
"The Parties shall first attempt to resolve any dispute, controversy, or claim arising out of or relating to this Agreement through good faith negotiations. Each Party shall designate a representative with the authority to settle the dispute, and these representatives shall meet at least once to attempt to resolve the dispute."
NEUTRAL
Mediation Clause
"If the Parties are unable to resolve the dispute through negotiation within thirty (30) days, they shall submit the dispute to mediation in accordance with the rules of the American Arbitration Association. The mediation shall be conducted in [City, State], and the costs of mediation shall be shared equally by the Parties."
UNFAVORABLE
Unclear Jurisdiction Clause
"The dispute resolution process shall be determined at the time of the dispute, without any pre-agreed jurisdiction or venue."
Fallbacks
High-Risk Projects
For high-risk projects, consider including expedited arbitration to quickly resolve disputes and minimize project delays.
International Contracts
In international contracts, specify the governing law and venue to avoid cross-border legal complications.
Long-Term Agreements
For long-term agreements, include periodic review of dispute resolution clauses to ensure they remain relevant and effective.
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WEEK 1
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Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
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WEEK 3
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Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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