How do you draft a arbitration clause?
Top 10 tips for drafting arbitration agreements
- Introduction.
- Scope of the arbitration agreement.
- Seat of the arbitration.
- Governing law of the arbitration agreement.
- Choice of rules.
- Language.
- Number and appointment of arbitrators.
- Specifying arbitrator characteristics.
Where are arbitration clauses found?
Arbitration is the most commonly used method of alternative dispute resolution (ADR), and you’ll find an arbitration clause in the fine print of all kinds of contracts these days. Read on to find out whether you should include an arbitration clause in your agreement.
What is the place of arbitration?
The place of arbitration (also commonly referred to as the ‘seat of arbitration’) determines the governing procedural law of the arbitration and the enforceability of the award. The place of hearing, on the other hand, is the physical location where the hearing is held.
What is the arbitration process?
Arbitration is a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments. The arbitration process is similar to a trial in that the parties make opening statements and present evidence to the arbitrator.
What should an arbitration clause include?
Generally speaking, contract arbitration clauses contain language similar to: “The parties to this contract hereby agree to resolve legal disputes through arbitration methods rather than civil lawsuits”. An arbitration clause may be tailored exactly to the disputing parties needs.
How common are arbitration clauses?
More than half—53.9 percent—of nonunion private-sector employers have mandatory arbitration procedures. Among companies with 1,000 or more employees, 65.1 percent have mandatory arbitration procedures. Among private-sector nonunion employees, 56.2 percent are subject to mandatory employment arbitration procedures.
Who uses arbitration clauses?
Mandatory arbitration clauses are widespread in the United States. For example, they are used by Amazon.com, 15 of the largest 20 U.S. credit card issuers, and 7 of the 8 largest cell phone companies, and 2 out of 3 major bike sharing companies in Seattle.
What is the language of arbitration?
Language used in the parties’ written and oral submissions, in the procedural orders and in the award(s) issued by the arbitrators. It is chosen based on joint agreement of the parties, usually in the arbitration clause, or is otherwise decided by the arbitral tribunal.
Can place of arbitration be changed?
The parties can mutually agree to change or alter the venue of Arbitration and the mutually agreed place will become the Venue of the Arbitration. However, they must keep in mind that changing the venue of arbitration for the sake of convenience implies conferring jurisdiction upon the courts of the changed venue.
Where can I go to arbitration in Australia?
Many commercial and construction disputes are arbitrated in Australia. The Australian Disputes Centre’s dispute resolution clauses are regularly used in commercial contracts across Australia. ADC’s domestic arbitration sample clause and ADC’s Arbitration Guidelines are available free of charge on this website.
How does an arbitration clause in a contract work?
Incorporation of an agreement to arbitrate into a contract (or by way of a separate arbitration agreement) provides the basis for the tribunal’s jurisdiction to determine any disputes that are covered by the arbitration agreement. An arbitration clause in a contract is severable from the substantive contract and enforceable in its own right.
Is the ADC’s domestic arbitration sample clause free?
ADC’s domestic arbitration sample clause and ADC’s Arbitration Guidelines are available free of charge on this website. In the international arena arbitration can be especially effective as there may be difficulties in litigating the dispute in a jurisdiction acceptable to all parties to a contract.
Which is the seat or legal place of Arbitration?
The seat, or legal place, of arbitration shall be [City and/or Country]. The language to be used in the arbitral proceedings shall be [ ]. The governing law of the contract shall be the substantive law of [ ]. Clauses compiled by the Law Office of Michael E. Young PLLC in 2010
