How to draft an efficient arbitration clause?
A company seeks to include a model arbitration agreement in its suite of contracts to ensure efficient settlement of its potential disputes.
A company seeks to include a model arbitration clause in its group of contracts to safeguard oneself in the event of possible future disputes
The drafting of such a clause should be tailored to the specific needs and expectations of the client and should anticipate relevant procedural aspects for an efficient resolution of disputes
Our client's challenge
Include in its contracts a model arbitration clause applicable to all its potential disputes
A company wishes to refer its disputes to arbitration and include, in its contract, a model arbitration agreement.
This arbitration clause must, therefore, be sufficiently broad to encompass various potential types of disputes, the interaction between different contracts applicable to one operation, and the different parties involved, to ensure that proceedings can be coherent.
The arbitration clause must also consider the legal and procedural framework of potential arbitrations (applicable rules, seat of arbitration, number of arbitrators, language of the arbitration etc.).
Our way
A tailored arbitration clause which considers the actual needs of our client
Arbitration agreements are simple instruments but must be tailored to the specificities of the disputes that can arise and to the interests of our clients.
A standard clause inserted into contract templates should be drafted in a way that allows it to encompass as many potential dispute situations as possible.
To ensure the effectiveness of the arbitration clause, we recommend submitting arbitration procedures to an arbitral institution to guarantee proper administration and selecting an arbitration-friendly seat.
We also advise specifying various procedural aspects depending on the needs of our client and the anticipated specificities of its disputes, such as the number of arbitrators and the modalities of their nomination, the opportunity to provide for amicable dispute settlement procedures, the applicable law and the language of the procedure.