Arbitration Clauses & Commercial Contractual Agreement

Arbitration Clauses & Commercial Contractual Agreement¹

1. Introduction: Arbitration Clauses in Commercial Contracts have become a generally acceptable practice. Unfortunately, Parties have been known to disregard Arbitration Clauses and swiftly resort to the traditional court system to enforce the terms and provisions of such contracts or the resolution of any dispute arising from the contract. This Article seeks to probe the rationale behind the inclusion of Arbitration Clause in a Contract and the position of Nigerian Courts to the inclusion and the validity of Arbitration Clauses in Commercial Contracts.

2. What is an Arbitration Clause?: An arbitration Clause is a written consensus embodying the Agreement of parties to resort to Arbitration should any dispute arise with regards to the obligations which both parties have undertaken to observe²; it provides for compulsory arbitration in case of dispute as to rights and liabilities under such contract³. This