Arbitration has long been the dispute resolution method of choice for cross-border transactions. It is also increasingly being selected as the preferred method for resolving domestic disputes, especially where parties desire a confidential and efficient dispute resolution process.
Arbitration is a consensual dispute resolution process. It requires the parties to enter into a valid and enforceable arbitration agreement, which records their agreement to resolve certain disputes by arbitration.
Yet, despite their significance, arbitration clauses are often the last provisions of a commercial contract to be negotiated. Called 'midnight clauses', they are rarely accorded the time and attention required to:
Poorly drafted arbitration clauses can be significant and costly. There are many examples of cases where parties have had to litigate because of an ambiguous clause, resulting in extra delays and expenses.
To provide clarity and avoid unnecessary complications, we have prepared this Guide to help parties negotiate properly drafted arbitration clauses that are enforceable, efficient and fit for purpose.