What should a good dispute resolution clause in a contract say?

A good clause creates a graded process. It often begins with a requirement to notify the dispute in writing and have senior representatives meet within a set number of days, then moves to mediation with a named provider such as an accredited mediator or organisation, and finally to arbitration or court if mediation fails. Specify the governing law, for example New Zealand law, and the forum, either the New Zealand courts or arbitration under a named set of rules with a clear seat, number of arbitrators and language. Consider carving out urgent injunctive relief, so parties can still go to court for interim protection. The clause should be clear about whether the process is mandatory, and about costs. Use precise language, because vague clauses are a common cause of costly jurisdiction fights.