When it comes to resolving the dispute by an arbitral tribunal instead of ordinary State courts, the “arbitration clause” is the provision in a contract that plays an important role.

Here some of the things are given that you need to consider for the arbitration agreement:

Language of the Arbitration

Parties should agree on the language of arbitration in advance to avoid unnecessary debates and additional points on which the arbitral tribunal will have to decide on. Usually the language of the contract is elected as the language of the arbitration, which is important to decide prior.

Number of Arbitrators

If the amount in dispute is low, a single person panel will be more appropriate as this will reduce costs of arbitration related to the fees for arbitrators. You can also use arbitration cost calculators that are available online to calculate the cost. Whereas, when the amount in dispute is important it is usually preferable to have a three-arbitrator panel to ensure the result.

Place of Arbitration

The selection of the seat of the arbitration is crucial in the arbitration. Cities like Paris, Geneva, London, Stockholm, and New York are often selected as place of arbitration for the arbitration-friendly laws. Furthermore, this will affect the potential procedural incidents, provisional remedies, which can represent the parties in the arbitration, who can be nominated as arbitrators, the enforceability of the award, the annulment of the award, and more.

Procedural Law

According to international practice and some case law, procedural law may be the law of the seat of arbitration but this is often unclear and frequently parties are tempted to argue that different laws were implicitly elected by them. However, most standard arbitration clauses do not specify the procedural law that will govern the arbitration agreement.

Thus, in order to avoid any kind of unnecessary debate, the parties should agree in advance regarding the arbitration agreement and the proceedings that will be governed by the law of the seat of arbitration, which often is the law applicable to the contract that the parties have chosen in advance as well.

For more information, feel free to visit https://www.acerislaw.com/