Tip 101: Enforceable Arbitration Agreement!
Here are few tips you must consider before drafting an arbitration agreement.
1. Familiarize yourself with the the arbitration laws and rules in the jurisdiction you intend to enforce your arbitration decision in. The seat of arbitration impacts the enforceability of the arbitration award.
2. Check that the rules (Ciarb, ICC) you intend to include in your arbitration agreement, are suitable for your potential disputes and that parties understand and are agreed.
3. Reflect on possible disputes and analyze if there can be resolved through arbitration. Be clear on the disputes to be subjected to arbitration. For example, in Zambia, you can chose to subject all disputes to arbitration except for those which are excluded in Section 6 of the Arbitration Act No. 19 of 2000.
4. Research and establish that the appointing authority you intend to include in your agreement is in existence and functional.
5. Ensure that Parties understand and agree to including an arbitration agreement into the main contract.
6. Do you want a sole arbitrator or a tribunal? think about the implication of either choice.
7. How will the arbitrator(s) be chosen?
These above and many more issues should be evaluated when drafting an arbitration agreement. Further, as laws of countries and rules of institutions change, it’s advised that arbitration clauses in contracts be reviewed from time to time in the life of a contract to align with any changes.
For your peace of mind, engage a dispute resolution expert to help you understand how you can prevent complications that come with badly drafted arbitration agreements.
For experts advice get in touch with iSettle on [email protected]
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Mary Mutupa MCIArb