Questions: The drafting of an ADR contract clause is a proactive attempt to ensure that litigation will be avoided should a dispute arise.

The answer is True

Drafting an Alternative Dispute Resolution (ADR) contract clause is indeed a proactive measure aimed at avoiding litigation. By including such a clause, parties agree in advance to resolve any disputes through methods like mediation or arbitration rather than going to court. This approach is generally intended to save time, reduce costs, and maintain confidentiality, which are common advantages of ADR over traditional litigation.

• ADR clauses are designed to provide a structured process for resolving disputes outside of court.
• They often specify the method of ADR to be used, such as mediation or arbitration, and may outline procedures for selecting a neutral third party.
• The inclusion of an ADR clause reflects the parties' intention to handle disputes amicably and efficiently, thereby minimizing the likelihood of litigation.

• This option would suggest that ADR clauses do not aim to avoid litigation, which contradicts the primary purpose of such clauses.
• While ADR does not guarantee that litigation will be avoided, as parties may still end up in court if ADR fails, the intent behind the clause is to prevent litigation whenever possible.