Why Include Dispute Resolution Clauses Define how conflicts will be resolved before they arise, potentially saving thousands in legal fees. Mediation Pros: Lower cost, faster resolution, preserves relationships. Cons: Non-binding, may not produce resolution. Arbitration Pros: Binding decision, faster than court, private. Cons: Higher costs than mediation, limited appeal rights. Litigation Pros: Full legal protections, appeals process. Cons: Very expensive, slow, public record. Recommended Approach Tiered clause: Required mediation first, then arbitration if unresolved, reserve litigation as last resort. Sample Clause "Parties agree to first attempt resolution through mediation. If unresolved within 30 days, binding arbitration under AAA rules."