Arbitration Clause in International Contracts

Details: Created on Thursday, 25 April 2013 13:39; Written by International Contracts Staff

international arbitration You might provide for arbitration as an alternative to litigation for resolving international contracts disputes. Arbitration is less formal procedurally than a court trial bus still allows Parties to present their claims before a neutral specialist or panel for an objective decision.

This remedy is increasing in popularity in commercial disputes, largely because it is less adversarial, less costly and faster than litigation. However, be certain that you seriously intend to settle disputes as you agreed under the contract.

An arbitratrion clause should specify:

Whether arbitration is binding or not binding on the parties.
The country where the arbitration will be conducted.
The procedure for enforcement on award.
The rules governing the arbitration, such as the International Chamber of Commerce (Paris) or the U.N. Commission on International Trade Law Model Rules.
The language in which the arbitration will be conducted .

Arbitration is not used in all countries. For example, disputes in Mexico are rarely settled by arbitration, and throughout Asia, arbitration is frowned on nearly as litigation in court. Moreover some countries do not recognize arbitration awards from other jurisdictions. You should consult an attorney familiar with law of the country of your client or supplier before assuming that you will be able to arbitrate potential contract disputes.

Arbitration Clause (English)

Both Parties, by mutual consent, resolve to refer any dispute to ................. [insert name of arbitration rules, such as The Rules of Conciliation and Arbitration of the International Chamber of Commerce] by one or more arbitrators appointed in accordance with said Rules. The place of arbitration shall be ........... [insert city and country] and the proceedings shall be carried out in ………… [insert language]. The arbitration will be .................. [binding/non biding].

Arbitration Clause (Spanish)

Las Partes, de común acuerdo, deciden someter sus controversias a ..................[insertar nombre de las normas, por ejemplo, El Reglamento de Conciliación y Arbitraje de la Cámara de Comercio Internacional] por uno o más árbitros designados de acuerdo a dicho Reglamento. El lugar del Arbitraje será ………….. [insertar ciudad y país] y el procedimiento deberá ser realizado en el idioma ………...... [insertar idioma]. El arbitraje será ........................ [vinculante/no vinculante].

Arbitration Clause text (French)

Les parties, d’un commun accord, décident de soumettre les litiges les opposant aux ....................... [insérer le nom des règles d'arbitrage comme le Normes de Conciliation et Arbitrage de la Chambre de Commerce Internationale, par un ou plusieurs arbitres désignés conformément à ces normes. Le lieu de l’Arbitrage sera ………… [ville et pays] et la procédure devra avoir lieu en langue ……….

To obtain models of the main international contracts, click here.