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.
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.
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