What is a dispute resolution agreement?

A dispute resolution agreement sets out how you and your client will handle disagreements if they arise. Instead of jumping straight to legal action (which is expensive and stressful for everyone), it establishes a structured process for working things out.

Most freelance disputes are about scope, payment, or quality - and most can be resolved through conversation or mediation without ever involving a lawyer.

When should you use one?

Ideally, you include a dispute resolution clause in every service agreement from the start. But if you're already in a disagreement and didn't have one, this standalone template can be signed by both parties.

What's included

Good faith negotiation - the first step is always a direct conversation. Both parties agree to attempt to resolve the issue informally within a set timeframe (usually 14 days).

Mediation - if direct negotiation fails, both parties agree to mediation with a neutral third party before taking legal action.

Arbitration option - if mediation doesn't work, the parties can agree to binding arbitration as an alternative to court proceedings.

Governing law - confirms the agreement is governed by Australian law and specifies the relevant state or territory.

Costs - how the costs of resolution are shared. Typically each party covers their own costs unless otherwise agreed.

Continuing obligations - confirms that both parties will continue to meet their existing obligations while the dispute is being resolved.