What does the Agreement state regarding legal fees in dispute resolution?

The correct answer highlights a typical provision in many legal agreements, including contractor agreements, where each party is responsible for their own legal expenses in the event of a dispute. This principle promotes fairness and reduces the financial burden on a single party, allowing both sides to equally bear the costs associated with legal proceedings. By stipulating that each party must cover their own legal fees, the agreement attempts to avoid potential disputes over the allocation of costs, which could complicate negotiations and settlement processes.

This arrangement also incentivizes parties to resolve conflicts amicably without resorting to litigation, as each party knows that they will incur costs regardless of the dispute's outcome. Understanding this provision is critical for contractors and their clients, as it sets expectations for potential legal conflicts and the financial implications involved. In many cases, agreements may also include exceptions or conditions under which different terms might apply, but the standard provision is to ensure that each party is responsible for their own legal representation.