A DPA outlines obligations between data controllers and processors regarding the handling of personal data under privacy laws. This playbook discusses key terms including processing scope, security measures, and cross-border transfers.
Why This Matters: Effective dispute resolution clauses minimize litigation costs, preserve business relationships, and provide clear paths to resolve disagreements.
Negotiation strategy
If you're the Data Controller:
Ensure the dispute resolution process aligns with the company's strategic interests. Consider including tiered escalation and arbitration to avoid lengthy litigation.
If you're the Data Processor:
Negotiate for a balanced approach that includes mediation before arbitration. Ensure the jurisdiction is favorable to the contractor's operations.
Essential elements
1
Tiered Escalation Process
Step-by-step conflict resolution.
2
Mediation Requirement
Mandatory mediation before arbitration.
3
Arbitration Clause
Binding arbitration for unresolved disputes.
Action framework
ACCEPT
Propose edits if the jurisdiction is unfavorable or if the process lacks clarity.
EDIT
Reject if the clause imposes excessive costs or delays.
ADD
Add if no dispute resolution mechanism is present.
PRO TIP
Always specify a neutral jurisdiction to avoid bias in dispute resolution.
Example clauses
FAVORABLE
Balanced Dispute Resolution Clause
"The parties agree to resolve disputes through mediation, followed by binding arbitration under ICC rules."
NEUTRAL
Standard Dispute Resolution Clause
"Disputes shall be resolved by arbitration in accordance with AAA rules."
UNFAVORABLE
One-Sided Dispute Resolution Clause
"All disputes shall be resolved exclusively in the courts of the contractor's home state."
Fallbacks
For international contracts, consider using UNCITRAL rules to ensure neutrality and enforceability across borders.
High-Value Transactions
In high-value transactions, include detailed arbitration procedures to protect significant investments.
Long-Term Partnerships
For long-term partnerships, prioritize mediation to maintain business relationships and avoid adversarial proceedings.
Technology & DataPlaybook Template (Pro both parties )
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