Mandatory Mediation And Arbitration Agreement Template for Germany

The Mandatory Mediation And Arbitration Agreement is designed for businesses operating under German law who wish to establish a clear, efficient, and binding dispute resolution mechanism outside the traditional court system. This document becomes particularly relevant when parties seek to manage potential disputes proactively and cost-effectively, while maintaining confidentiality and business relationships. It incorporates requirements from German legislation, including the Civil Code (BGB), Code of Civil Procedure (ZPO), and Mediation Act, while also considering international best practices for cross-border disputes. The agreement is structured to first require mediation attempts before proceeding to binding arbitration, thereby promoting amicable resolution while ensuring a definitive outcome if mediation fails.

1. Parties: Identification and details of the contracting parties, including their legal status and registered addresses

2. Background: Context of the agreement and the parties' intention to resolve disputes through mandatory mediation and arbitration

3. Definitions: Key terms used throughout the agreement, including 'Dispute', 'Mediation', 'Arbitration', 'Award', etc.

4. Scope of Agreement: Types of disputes covered by the agreement and any specific exclusions

5. Mandatory Mediation Procedure: Detailed process for initiating and conducting mediation, including timeframes and mediator selection

6. Progression to Arbitration: Conditions and process for moving from mediation to arbitration if mediation fails

7. Arbitration Procedure: Comprehensive arbitration rules, including tribunal composition, seat of arbitration, and procedural rules

8. Governing Law and Language: Specification of German law as governing law and the language(s) for proceedings

9. Costs and Fees: Allocation of costs for both mediation and arbitration processes

10. Confidentiality: Confidentiality obligations for both mediation and arbitration processes

11. Notices: Process for sending and receiving formal notices under the agreement