As compared to litigation, Arbitration is generally considered as a cheaper, faster, and more confidential dispute resolution method. Thus, most of the people prefer arbitration to resolve the disputes.

When it comes to drafting international arbitration clauses in your contract, it is not as simple as it seems. Below are some tips that can help you in drafting the arbitration clauses in your contracts:

Clearly Express the Agreement to Arbitrate

First, express the willingness to submit the dispute to arbitration. Be clear in the arbitration agreement whether the arbitration is mandatory or optional. Never use the permissive wordings like “may” or “might” in the agreement and instead use the words like “shall” or “will” which expresses legally binding obligations.

Confidentiality Obligations

For built-in confidentiality provisions, certain Arbitration Rules are provided. However, the parties are encouraged to express confidentiality obligations and remedies as well for their breach in view of the fact that not all arbitration clauses require confidentiality and the laws of many seats of arbitration do not require this either.

Consider a Set of Arbitration Rules

To provide the procedural framework for the proceedings, choose the set of arbitration rules. The parties save themselves from having to agree upon all procedural aspects in relation to the proceedings by choosing a complete set of arbitration rules. The arbitration rules are a comprehensive set of rules, which govern the arbitration procedural aspects.

Determine the Law Governing Arbitration Procedure

The arbitration seat is extremely imperative to determine the law governing arbitration procedure. Parties usually choose the place such as Paris, Geneva, or London where the local courts would most likely support the arbitration process and enforce the agreement.

Define the Arbitration Scope

It is important to define the scope of arbitration carefully. Unless you agree that all disputes, arising out of the contract and from the business relationship are to be arbitrated, be sure to exclude the disputes, which are not to be submitted to arbitration.

Appointment of Arbitration Lawyers

The manner of appointment of international arbitration lawyers and the constitution of the tribunal should be considered while drafting the arbitration clauses. There should be careful consideration given to the manner of appointment of arbitrator(s) and the constitution of the tribunal.

Consider the Language

While choosing the language of the proceedings, parties should not only take into account the language of the contract but also the related documentation.

For more information, get in touch with renowned ICSID arbitration lawyers. The ICSID Arbitration Lawyers Desk is a dedicated team of lawyers, which accompanies clients involved in ICSID investment arbitrations, where the ICSID Arbitration Rules apply or the dispute resolved under the aegis of the ICSID. To learn more, visit https://www.acerislaw.com/.