Draft Of Arbitration Agreement

The article is written from the point of view of an English lawyer, but many comments apply regardless of the nationality of the parties, the law of the contract or the place of arbitration; subject to the re-enactment of an agreement in accordance with existing legislation. Parties should be careful in choosing several languages. Multilingual arbitration procedures can be difficult in practice. Identifying referees who can practice in all selected languages can be a challenge. Translation and interpretation will result in additional costs and delays. Both Article 19.1 of the CNUDCI rules and Article 20 of the ICC rules provide that, in the absence of an agreement, the arbitration tribunal determines the language of arbitration. If the parties do not make this decision, the arbitration institution (if selected) will decide on the arbitrators regarding the complexity and amount of the case. In ad hoc arbitration, the rules of arbitration (if selected) will be the number of arbitrators appointed. If the parties do not choose rules for arbitration, it is important to make this provision in the arbitration agreement.

The parties should define the procedure for selecting and replacing arbitrators. In general, institutional and ad hoc arbitration rules govern the methods of selecting and replacing arbitrators. Parties may choose to remain silent on the production of documents and adopt the provisions of the existing arbitration rules. Parties may adopt the IBA`s evidence-obtaining rules in international arbitrations (“IBA rules”) or set their own rules. In extreme cases, a pathological clause can nullify the entire arbitration. The arbitration agreement did not hesitate to enter into the agreement of the parties to settle the dispute by arbitration. Parties should use mandatory language such as “must” or “must” instead of using generous language such as “may” or “could.” It is recommended to use words such as “conflict” or “differences” from “claims.” The scope of an arbitration agreement becomes the framework of the dispute that can be referred to arbitration proceedings.