Overview
This section prescribes the mandatory contract clauses regarding disputes and applicable law that must be included in federal solicitations and contracts to establish the legal framework for resolving claims.
Key Rules
- FAR 52.233-1 (Disputes): This clause is mandatory for most solicitations and contracts, unless specific exemptions under 33.203(b) (such as certain foreign government or international body contracts) apply.
- Alternate I of 52.233-1: The Contracting Officer must use this version if the agency determines that the contractor must continue performance while a claim is being resolved.
- FAR 52.233-4 (Applicable Law for Breach of Contract Claim): This clause must be inserted in every federal solicitation and contract, without exception.
Practical Implications
- Operational Continuity: By including Alternate I, the government ensures that critical services or supplies are not interrupted by legal disagreements, placing the burden of continued performance on the contractor.
- Legal Uniformity: These clauses standardize the administrative process for filing claims and ensure that federal law consistently governs contract breaches, providing a predictable environment for both the government and the contractor.