Guidelines To Drafting International Arbitration Clauses

Hastily incorporated arbitration agreements can prove counterproductive, amplifying the time, cost, and intricacy involved in resolving disputes. However, a well-crafted arbitration agreement holds the potential to mitigate these risks.

The foundation of any arbitration agreement lies in the mutual consent of all parties involved, selecting arbitration as the preferred means of dispute resolution over state courts and other alternatives. This consent serves as the bedrock of arbitration. The arbitration agreement also cannot breach principles of contract law, such as fraud, illegality, or lack of capacity, or else it may render an arbitration agreement invalid. Furthermore, the New York Convention and the IAA outline certain non-arbitrable categories of issues, which can also invalidate an arbitration agreement.