Dispute

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A Dispute is a disagreement among two or more Parties concerning a claim, fact, interpretation, Right, Obligation, performance, calculation, status, or other matter.

A Dispute may concern:

• The interpretation of an Agreement or Agreement Term
• The existence or scope of a Right or Obligation
• Whether a Party performed an Obligation
• The amount, timing, or method of a payment
• A valuation, calculation, classification, or determination
• Whether a default, breach, termination, or other event occurred
• The accuracy or completeness of information
• The legal status, validity, or enforceability of an Agreement

A Dispute may be addressed through negotiation, escalation, mediation, arbitration, adjudication, or another dispute-resolution process.

The existence of a Dispute does not by itself determine which Party is correct. It also does not necessarily suspend, terminate, invalidate, or otherwise change the lifecycle state of the Agreement.

disagreement among two or more parties concerning a claim, fact, interpretation, right, obligation, performance, or other matter

Adapted from:

• Cornell Law School Legal Information Institute: Dispute
• Cornell Law School Legal Information Institute: Adjudication
• Financial Industry Business Ontology, Contracts Ontology

• A Dispute must involve at least two positions concerning a specified matter
• A Dispute should identify the Parties involved
• A Dispute should identify the matter being disputed
• A Dispute may concern all or part of an Agreement
• A Dispute may concern a Transaction governed by an Agreement
• A Dispute may exist without initiating a formal legal proceeding
• A claim or allegation does not establish the correctness of the asserted position
• The existence of a Dispute does not by itself establish a breach or default
• The existence of a Dispute does not by itself change the Agreement Lifecycle State
• A Dispute may be open, stayed, resolved, withdrawn, dismissed, or superseded
• A resolution may result from agreement among the Parties or from a Legal Determination
• Evidence and provenance associated with the Dispute and its resolution should be preserved

Party A calculates that Party B owes USD 1,000,000 under an Agreement. Party B calculates that the amount owed is USD 900,000.

The Parties have a Dispute concerning the calculation and amount of the Obligation.

The Agreement may remain effective while the Parties resolve the Dispute. A negotiated settlement, arbitral award, or court decision may resolve the Dispute.