- It is common for disputes to arise between parties to a contract. This may be in relation to minor operational issues, or it may relate to much larger issues, such as termination of the contract, allegations of misrepresentation or disputes as to which party bears the cost or risk of a certain event. Dispute resolution clauses can cover both contractual or non-contractual disputes.
- A well-drafted dispute resolution clause helps disputes to be resolved in a timely and efficient way. It is likely to be important to potential investors in a project that a robust dispute resolution clause forms part of a contract, as this will help the investors have confidence that there is a mechanism in place to help the parties resolve any disputes which arise.
- Given the complexity and diversity of the possible disputes, there is no 'one size fits all' approach to dispute resolution which can be applied to all contracts across the green hydrogen value chain. In many circumstances, an arbitration clause will be appropriate, potentially combined with expert determination for certain issues identified in advance and compulsory negotiation or mediation at the preliminary stage.