Multi-tiered dispute resolution clauses (MTDRCs), which require parties to engage in one or more preliminary dispute resolution steps (such as negotiation or mediation) before initiating arbitration, have become a prevalent feature in commercial contracts. Despite their widespread use, Vietnamese law lacks a comprehensive legal framework addressing the procedural and substantive issues surrounding MTDRCs. This paper analyzes the legal nature of MTDRCs under Vietnamese law, explores divergent judicial interpretations regarding their enforceability in arbitration. The paper concludes with recommendations for legislative clarification and for contracting parties in the exercise of MTDRCs.

Multi-tiered Dispute Resolution Clauses

This research is authored by Hoang Thi Thuy Lan.