Mediation and Arbitration paragraphs to include in (almost) every contract:
In the event that a dispute arises regarding any matter contained in this agreement, the parties will first seek resolution of that dispute through mediation. If they are unable to agree on the selection of a mediator, they shall each select one mediator, and those two mediators shall in turn select a third to mediate the dispute. The cost of mediation shall be borne equally by the parties (or paid in full by _________).
In the event that the parties fail to resolve any dispute relating to this agreement by means of mediation, the dispute shall be settled by binding arbitration in (__city___) in accordance with rules proposed by the arbitrator and acceptable to the parties. Judgement upon the award rendered by the arbitrator may be entered in any court having jurisdiction over the mater. The prevailing party shall be entitled to recover reasonable attorney’s fees.
Source: Affordable Justice, Elizabeth L. Allen and Donald D. Mohr, West Coast Press, 1998