Special Report on
Drafting an Arbitration Clause
Drafting an Arbitration Clause - Trends
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Your client, a large widget manufacturer, comes to you with a commercial dispute with one of its main suppliers of raw materials. Upon review of the governing contract, you notice that it contains a procedure compelling arbitration for any dispute that arises under its terms. You also notice, however, that the contract expired four years ago. When you ask the client about this fact, he confirms that the contract technically expired then, but says that the two companies “just kept doing business together like we always had under the contract.” Because the parties continued to behave as if the ...
Given that the arbitration clause is often relegated to the status of boiler-plate during contractual negotiations, it will come as no surprise that arbitration clauses may be inadequately drafted. While not every clause will be so deficient as to be ‘pathological’, many readers of this blog will have first-hand experience of dealing with the fall-out from an arbitration clause which has suffered from ambiguities in drafting or a lack of comprehensiveness of thought. The ‘IBA Guidelines for Drafting International Arbitration Clauses’, recently published in draft form (at ... Read More
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