contract-law international legal-terms breach-of-contract sale-of-goods
resolution vs settlement
<p>This is a provision in  CONTRACT FOR THE
INTERNATIONAL COMMERCIAL
SALE OF GOODS</p>
<ol start="12">
<li>Effects of avoidance in general</li>
</ol>
<p>12.1 Avoidance of this contract releases both parties from their obligation to
effect and to receive future performance, subject to any damages that may be
due.</p>
<p>12.2 Avoidance of this contract does not preclude a claim for damages for
non-performance.</p>
<p>12.3 Avoidance of this contract does not affect any provision in this contract
for the <strong>settlement of disputes</strong> or any other term of this contract that is to
operate even after avoidance.</p>
<p>Can I use dispute resolution here to replace settlement?</p>

<blockquote>
<p>Can I use dispute resolution here to replace settlement?</p>
</blockquote>
<p>It depends on whether you as the draftsman of the contract intend settlement to be a preferred method of dispute resolution.</p>
<p>The term <em>settlement</em> suggests that the parties are the ones who decide how to solve their dispute. That is the purpose of methods such as mediation. By contrast, other methods such as arbitration or judicial proceedings delegate to a non-party the decision of the dispute.</p>
<p>The act of replacing the term <em>settlement</em> does not by itself preclude settlement as method for dispute resolution. However, that would make harder for a party to persuade the court that the intent of the contract was to give preference to settlement-based methods.</p>
