International commercial arbitration is a popular method of resolving disputes between parties across international borders. It is a preferred method because it is faster, more cost-effective, and provides the parties with more control over the process.
One essential component of an international commercial arbitration agreement is the arbitration agreement. This is a contract between the parties involved in the dispute that outlines the rules and procedures that will govern the arbitration.
A well-drafted arbitration agreement provides clarity and certainty to the parties, avoids disputes and delays during the arbitration process, and reduces the risk of challenges to the arbitration award.
Here is a sample of essential provisions that should be included in an international commercial arbitration agreement.
1. Scope of the arbitration agreement
The arbitration agreement should clearly state the scope of the agreement, including the types of disputes to be arbitrated, the parties involved, and the applicable law.
2. Appointment of arbitrators
The agreement should specify the number of arbitrators and the process for appointing the arbitrators. It should also outline the qualifications and expertise required for the arbitrators.
3. Conduct of the arbitration
The agreement should provide clear guidance on the conduct of the arbitration, including the place and language of the arbitration, the timeline for exchanging documents and conducting hearings, and the rules of evidence.
4. Arbitration award
The agreement should outline the process for issuing the arbitration award, including the timeline, the requirements for the award, and the procedures for challenging the award.
The agreement should address the confidentiality of the arbitration proceedings and the award.
6. Governing law
The agreement should specify the law that governs the arbitration agreement and the arbitral award.
The agreement should outline the costs of the arbitration, including the fees payable to the tribunal, expenses related to the arbitration, and the allocation of costs.
In conclusion, when drafting an international commercial arbitration agreement, it is essential to be clear and specific to avoid any ambiguity or disputes in the future. The above sample provisions will ensure that the arbitration is fair, efficient, and cost-effective for all parties involved.