Drafting the Clauses For International Arbitration - An Overview

Most arbitral establishments have model arbitration clauses to be used by the involved parties for authorizing the institution to direct an arbitration proceeding. There are various publications that are also available, that can be used for drafting clauses for international arbitration properly and without any loopholes.

It is important to include several key components which are common to almost all international arbitration agreements. These comprise the consent to arbitrate, a specification of the extent of dispute issues subjected to arbitration, the methodology for selecting the arbitrator(s), a choice of the arbitral seat and the adoption of institutional or ad hoc arbitration principles. A host of different rules can also be incorporated in the international arbitration clauses, including the language for the proceedings of the arbitration, the decision of the applicable law, the qualifications of the arbitrators, costs, interim relief, procedural matters and so forth, although it is often safer to simply use a model arbitration clause.

Often it is seen that parties face difficulty in selecting an arbitration institution, so to overcome this problem some international arbitration specialists suggest inclusion of an arbitration clause that authorizes two arbitration foundations in the same city. Such an option provides the disputants flexibility to choose an arbitration facilitator before commencing with the process, although it at times results in parallel proceedings.

A piece of writing by Eric Sherby from Israel in the Business Law Today of the American Bar Association, recommends a mnemonic tool intended to empower the drafter to recollect a checklist for rapidly drafting international arbitration clauses, which is "BLINC LLC", standing for Broad, Law, Institutional, Number, Costs, Location Language, and Carve-out.

Get To Know About Arbitration Cost Calculators

Arbitration is a method that is utilized to resolve various commercial disputes in an expedient way outside of the court. It is basically involved in the settlement of disputes emerging from business contracts typically entered into by big business undertakings and companies. Such a conflict management technique is becoming a more favorable method for determining disputes mainly due to its unbiased and confidential nature. Hearings happen in a private room where just the disputants and a board of arbitrators is present, so all the proceedings of the case are kept private without harming the reputation of the parties involved.

It is rapidly becoming a standout amongst the best mediums for speedy settlement of disputes in view of its certain selective features which make it stand apart from the rest of the dispute resolution methods. There are numerous prominent websites that offer services of International Arbitration and dispute settlement. Any business interested in resolving its disputes through arbitration can take help from the Internet to reach a dependable and licensed arbitration firm.

A few facilitators of this type of dispute resolution system give a comprehensive Launchpad for organizations to settle their issues in a fast way, outside of the court, while incurring less expenses as compared to traditional court proceedings. Some websites also present their clients with some tremendously desired features, such as, an Arbitration Cost Calculator. This feature might be effectively used to comprehend the approximate measure of the cost that a disputant will need to pay to enter the methodology of his choice for setting up the arbitration. Such a feature greatly helps in making a better informed and a wise decision. The ICC had the original idea for such a cost calculator.

Roles and Responsibilities of an International Arbitrator

International Arbitration has become the most preferred means of dispute settlement between big corporations and large enterprises that are involved in cross-border business. One of the main reasons why arbitration is scaling new heights of popularity among the business community is the fact that it offers a quick and less expensive alternative to resolve disputes as compared to the traditional court proceedings.

International Arbitration Law guarantees that the reputation of the involved parties is protected by incorporating the important feature of confidentiality into the process of conflict resolution. This is done by holding all the hearings and proceedings of the court in a private room where only the concerned parties and a panel of arbitrators is present, and no detail of the case is leaked out to the general public.

The various roles and responsibilities of an International Arbitrator are given as follows:

•    The most important responsibility of an arbitrator is to resolve disputes in a swift and fair manner.

•    Arbitrators are required to give internationally enforceable judgments.

•    Arbitration technocrats are required to facilitate a neutral dispute resolution environment.

•    They are expected not to provide an unfair domestic court advantage.

•    To maintain the neutrality of the adjudicative process.

•   International arbitrators must provide independent, adjudicative services in order to honor the expectations of the involved parties.

•    An arbitrator should give such judgments that contribute to the legitimacy of international arbitration.

•    To facilitate an easy platform for resolving disputes involving disputants from different cultural and legal backgrounds.