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Are Your Business Interests Thoroughly Protected: The Importance of a Well-Drafted Commercial ADR Clause

Business disputes are as common as raindrops. In 2024 alone, the U.S. government reported there were 290,896 civil cases filed in U.S. district courts. The high cost, lengthy process and uncertain outcome of litigation have spurred many businesses to turn to alternative dispute resolution (ADR) to handle disagreements. Commercial ADR clauses are increasingly becoming a standard part of all types of contracts. For instance, such clauses are ubiquitous in credit card agreements and employment contracts.


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Business disputes are as common as raindrops. In 2024 alone, the U.S. government reported there were 290,896 civil cases filed in U.S. district courts. The high cost, lengthy process and uncertain outcome of litigation have spurred many businesses to turn to alternative dispute resolution (ADR) to handle disagreements. Commercial ADR clauses are increasingly becoming a standard part of all types of contracts. For instance, such clauses are ubiquitous in credit card agreements and employment contracts.


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