Appendix 1 – Sample Arbitration Clauses

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PRINCIPAL INTERNATIONAL ARBITRATION INSTITUTIONS

International Chamber of Commerce (ICC)
“All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules.”

London Court of International Arbitration (LCIA)
“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause.

  • The number of arbitrators shall be [one/three].
  • The seat or legal place of the arbitration shall be [city and/or country].
  • The language to be used in the arbitral proceedings shall be [language].
  • The governing law of the contract shall be the substantive law of [jurisdiction].”

World Intellectual Property Organisation (WIPO)

Recommended WIPO Arbitration Clause:
“Any dispute, controversy or claim arising under, out of or relating to this contract and any subsequent amendments of this contract, including, without limitation, its formation, validity, binding effect, interpretation, performance, breach or termination, as well as non-contractual claims, shall be referred to and finally determined by arbitration in accordance with the WIPO Arbitration Rules. The arbitral tribunal shall consist of [three arbitrators / a sole arbitrator]. The place of arbitration shall be [city and/or country]. The language to be used in the arbitral proceedings shall be [language]. The dispute, controversy or claim shall be decided in accordance with the law of [jurisdiction].”

Recommended WIPO Expedited Arbitration Clause:
“Any dispute, controversy or claim arising under, out of or relating to this contract and any subsequent amendments of this contract, including, without limitation, its formation, validity, binding effect, interpretation, performance, breach or termination, as well as non-contractual claims, shall be referred to and finally determined by arbitration in accordance with the WIPO Expedited Arbitration Rules. The place of arbitration shall be [city and/or country]. The ­language to be used in the arbitral proceedings shall be [language]. The dispute, controversy or claim shall be decided in accordance with the law of [jurisdiction].”

International Centre for Settlement of Investment Disputes (ICSID)
“The [Government]/[name of constituent subdivision or agency] of [name of Contracting State] (hereinafter the ‘Host State’) and [name of investor] (hereinafter the “Investor”) hereby consent to submit to the International Centre for Settlement of Investment Disputes (hereinafter the ’Centre’) any dispute arising out of or relating to this agreement for settlement by [conciliation]/[arbitration]/ [conciliation followed, if the dispute remains unresolved within [time limit] of the communication of the report of the Conciliation Commission to the parties, by arbitration] pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (hereinafter the ’Convention’).”

Arbitration Institute of the Stockholm Chamber of Commerce (SCC)
“Any dispute, controversy or claim arising out of or in connection with this contract, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce. The arbitral tribunal shall be composed of ... arbitrators (a sole arbitrator). The seat of arbitration shall be ... . The language to be used in the arbitral proceedings shall be ... .”

International Centre for Dispute Resolution (ICDR)
“Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be determined by arbitration administered by the International Centre for Dispute Resolution in accordance with its International Arbitration Rules.”
or
“Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be determined by arbitration administered by the American Arbitration Association in accordance with its International Arbitration Rules.” The parties may wish to consider adding:

  • “The number of arbitrators shall be (one or three)”;
  • “The place of arbitration shall be (city and/or country)”; or
  • “The language(s) of the arbitration shall be ... .”

Swiss Rules of International Arbitration
Any dispute, controversy or claim arising out of or in relation to this contract, including the validity, invalidity, breach or termination thereof, shall be settled by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers of Commerce in force on the date when the Notice of Arbitration is submitted in accordance with these Rules:

  • “The number of arbitrators shall be [one/three]”;
  • “The seat of the arbitration shall be [city in Switzerland, unless the parties agree on a city abroad]”; and
  • “The arbitral proceedings shall be conducted in [language].”

Deutsche Institution für Schiedsgerichtsbarkeit e.V. (DIS)
“All disputes arising in connection with the contract (... description of the contract ...) or its validity shall be finally settled in accordance with the Arbitration Rules of the German Institution of Arbitration e.V. (DIS) without recourse to the ordinary courts of law:

  • “The place of arbitration is ... .”;
  • “The arbitral tribunal consists of ... (number of) arbitrators.”;
  • “The substantive law of ... is applicable to the dispute.”;
  • “The language of the arbitral proceedings is ... .”

PRINCIPAL EUROPEAN ARBITRATION INSTITUTIONS

Austria
International Arbitral Centre of the Austrian Federal Economic Chamber “All disputes arising out of this contract or related to its violation, termination or nullity shall be finally settled under the Rules of Arbitration and Conciliation of the International Arbitral Centre of the Austrian Federal Economic Chamber in Vienna (Vienna Rules) by one or more arbitrators appointed in accordance with these Rules.”

Appropriate supplementary provisions:

  • “The number of arbitrators shall be [one or three].”;
  • “The substantive law of [jurisdiction] shall be applicable.”;
  • “The language to be used in the arbitral proceedings shall be [language].”

Parties having concluded the arbitration agreement as businessmen may waive their right to have recourse against an award in Austria on those grounds on which recourse may be had against a court judgment by way of an application for reopening the case. If this is desired, it is recommended that the following be added: “Pursuant to Para. 598 (2) of the Austrian Code of Civil Procedure (ZPO), the parties expressly waive the application of Para. 595 (1) Figure 7 of the said Code.”

Belgium
Belgian Centre for Arbitration and Mediation (CEPANI) “Any dispute arising out of or in relation with this agreement shall be finally settled under the CEPANI Rules of Arbitration by one or more arbitrators appointed in accordance with those Rules.”

Czech Republic
Court of Arbitration Attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic
“All disputes arising from the present contract and in connection with it shall be finally decided with the Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic by [one/three] arbitrator[s] in accordance with the Rules of that Arbitration Court.”

England and Wales
Chartered Institute of Arbitrators
“Any dispute or difference arising out of or in connection with this contract shall be determined by the appointment of a single arbitrator to be agreed between the parties, or failing agreement within 14 days, after either party has given to the other a written request to concur in the appointment of an arbitrator, by an arbitrator to be appointed by the President or a Vice-President of the Chartered Institute of Arbitrators.”

London Court of International Arbitration (LCIA)
“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause.

  • The number of arbitrators shall be [one/three].
  • The seat or legal place of the arbitration shall be [city and/or country].
  • The language to be used in the arbitral proceedings shall be [language].
  • The governing law of the contract shall be the substantive law of [jurisdiction].”


London Maritime Arbitrators Association
“This Contract shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Contract shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause.

The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced.

The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbi­trator within 14 calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the 14 days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the 14 days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if he had been appointed by agreement.

Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator.

In cases where neither the claim nor any counterclaim exceeds the sum of USD 50,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.”

France
Association Française d’Arbitrage (AFA)
“Any dispute or disagreement arising out of or in connection with this contract shall be submitted to arbitration in accordance with the Rules of the Association Française d’Arbitrage which the parties declare to have accepted.”

International Chamber of Commerce (ICC)
“All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules.”

Germany
Deutsche Institution für Schiedsgerichtsbarkeit e.V. (DIS)
“All disputes arising in connection with the contract (... description of the contract ...) or its validity shall be finally settled in accordance with the Arbitration Rules of the German Institution of Arbitration e.V. (DIS) without recourse to the ordinary courts of law:

  • “The place of arbitration is ... .”;
  • “The arbitral tribunal consists of ... (number of) arbitrators.”;
  • “The substantive law of ... is applicable to the dispute.”;
  • “The language of the arbitral proceedings is ... .”


Hungary
Court of Arbitration Attached to the Hungarian Chamber of Commerce and Industry “The parties agree that all disputes arising from or in connection with the present contract, its breach, termination, validity or interpretation, shall be exclusively decided by the Court of Arbitration attached to the Hungarian Chamber of Commerce and Industry (Budapest) in accordance with its own Rules of Proceedings.”

Parties may wish to consider adding:

  • “The number of arbitrators shall be ... .”;
  • “The applicable law shall be ... .“;
  • “The language(s) to be used in the arbitral proceedings shall be ... .”

The Netherlands
Netherlands Arbitration Institute (NAI)
“All disputes arising in connection with the present contract, or further contracts resulting therefrom, shall be finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute (Nederlands Arbitrage Instituut).”

  • “The arbitral tribunal shall be composed of one arbitrator/three arbitrators.”;
  • “The place of arbitration shall be ... (city).”;
  • “The arbitral procedure shall be conducted in the ... language.”;
  • “Consolidation of the arbitral proceedings with other arbitral proceedings pending in the Netherlands, as provided in Article 1046 of the Netherlands Code of Civil Procedure, is excluded.”

Poland
The Court of Arbitration at the Polish Chamber of Commerce in Warsaw Recommended arbitration clause for submission of disputes to the Court of Arbitration: “All disputes arising out of the present contract or in connection therewith shall be finally settled by the Court of Arbitration at the Polish Chamber of Commerce in Warsaw according to the Rules of that Court.”

In addition to resolving disputes according to its own Arbitration Rules, the Court of Arbitration at the Polish Chamber of Commerce administers arbitrations according to the UNCITRAL Arbitration Rules of 1976. Such administration is performed under a separate set of the Court Rules if the parties so agree in their arbitration agreement. The recommended wording for such an arbitration clause is as follows: “All disputes arising out of the present contract or in connection therewith shall be finally settled under the Rules of the Court of Arbitration at the Polish Chamber of Commerce on administering arbitrations according to the UNCITRAL Arbitration Rules.”

Romania
International Court of Commercial Arbitration Attached to the Chamber of Commerce and Industry of Romania
“Any dispute arising from or in relation to this contract, including the conclusion, performance or termination thereof, shall be settled through the arbitration of the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania and Bucharest according to its Rules of Arbitration. The arbitral award shall be final and binding.”

The parties may also choose to provide for the following:

  • “The arbitral tribunal shall be composed of a sole arbitrator, appointed upon joint agreement of the parties or by the president of the Court of International Arbitration attached to the Chamber of Commerce and Industry of Romania, where parties fail to reach such an agreement.”

or “The arbitral tribunal shall be composed of two arbitrators, each of them appointed by one of the parties and no consent of the other party is necessary thereto.”
(Where such specifications are not made, the arbitral tribunal shall be composed of three arbitrators in accordance with the Rules of Arbitration; one arbitrator appointed by each party and a presiding arbitrator designated by the arbitrators.);

  • “The arbitral tribunal shall settle the dispute in law, and Romanian law shall be applicable.”

or “The arbitral tribunal shall judge the dispute 'ex aequo et bono'.”;

  • “The place of arbitration is at … (where a different place than the head office of the Court of Arbitration is established).”;
  • “The arbitral tribunal shall render the award within … months (where the parties agree to establish a longer or shorter interval than five months, as provided by the Rules of Arbitration of the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania).”

Russian Federation
The International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation (ICAC)
“Any dispute, controversy or claim which may arise out of or in connection with the present contract (agreement), or the execution, breach, termination or invalidity thereof, shall be settled by the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation in accordance with its Rules.”

The Arbitration Court at the St Petersburg Chamber of Commerce and Industry
“All disputes arising out of or in connection with this agreement (contract) or following from it shall be submitted for final resolution by the Arbitration Court at the Saint Petersburg Chamber of Commerce and Industry in accordance with the Regulations of the said Court.”

Sweden

Arbitration Institute of the Stockholm Chamber of Commerce (SCC)
“Any dispute, controversy or claim arising out of or in connection with this contract, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce. The arbitral tribunal shall be composed of ... arbitrators (a sole arbitrator). The seat of arbitration shall be ... . The language to be used in the arbitral proceedings shall be ... .”

Switzerland

Swiss Rules of International Arbitration
Any dispute, controversy or claim arising out of or in relation to this contract, including the validity, invalidity, breach or termination thereof, shall be settled by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers of Commerce in force on the date when the Notice of Arbitration is submitted in accordance with these Rules:

  • “The number of arbitrators shall be [one/three]”;
  • “The seat of the arbitration shall be [city in Switzerland, unless the parties agree on a city abroad]”; and
  • “The arbitral proceedings shall be conducted in [language].”



AD HOC ARBITRATION

Ad hoc arbitration under UNCITRAL Arbitration Rules
“All and any disputes or differences arising out of or in connection with this Agreement, or the breach, termination, or invalidity thereof, shall be referred to and finally resolved by arbitration in accordance with the UNCITRAL Arbitration Rules [as at present in force/as in force at the time when arbitration proceedings are commenced] (‘the UNCITRAL Rules’).“

“The Notice of Arbitration shall be served in accordance with Article 3 of the UNCITRAL Rules.“

“The number of arbitrators shall be [one/three] and they shall be appointed in accordance with the UNCITRAL Rules. The appointing authority for the purposes of the UNCITRAL Rules shall be [institution].“

The place and the seat of the arbitration shall be [city and/or country] and the language of the arbitration shall be [language].

All and any awards of the arbitrators shall be made in writing and shall be final and binding on the parties [who expressly exclude all and any rights of appeal from or challenge of all and any awards to the extent that such exclusion may be validly made]. All and any awards of the arbitrators shall be given by majority decision but if there be no majority, the award shall be made by the presiding arbitrator alone.

The final award shall be made within six months from the appointment of the tribunal, but insofar as this is impractical, it shall be made as soon as possible thereafter.

The parties agree to keep confidential to themselves and to their legal and other professional advisers the existence and details of any proceedings pursuant to this clause, including the parties’ submissions and evidence, all and any awards (their content, reasons and result) – save to the extent that such documents or information are in the public domain or their disclosure is required by a statutory duty or is reasonably necessary to protect or pursue a legal right or remedy arising out of or in connection with any award or this agreement.

This agreement shall be governed by and construed in accordance with the substantive law of [jurisdiction].”

Combined med/arb clause
Combined Negotiation, Mediation and Arbitration Clause
“If any dispute arises out of this agreement the parties will attempt to settle it by negotiation.

If the parties are unable to settle any dispute by negotiation [within [21] days], the parties will attempt to settle it by mediation in accordance with the Centre for Dispute Resolution (CEDR) Model Mediation Procedure (‘the Model Procedure’).

To initiate a mediation a party [by its managing director] must give notice in writing (‘ADR notice’) to the other party/parties to the dispute [addressed to its/their respective managing directors] requesting a mediation in accordance with Clause 2.

If there is any point on the conduct of the mediation (including as to the nomination of the mediator) upon which the parties cannot agree within [14] days from the date of the ADR notice, CEDR will, at the request of any party, decide that point for the parties, having consulted with them.

The mediation will start not later than [28] days after the date of the ADR notice. No party may commence any court proceedings/arbitration in relation to any dispute arising out of this agreement until they have attempted to settle it by mediation and that mediation has terminated.

Neither party may terminate the mediation until each party has made its opening presentation and the mediator has met each party separately for at least [one hour]. Thereafter Paragraph 14 of the Model Procedure will apply.

If the parties have not settled the dispute by the mediation within [42] days from the date of the ADR Notice, the dispute shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause.

  • The number of arbitrators shall be [one/three].
  • The seat or legal place of the arbitration shall be [city and/or country].
  • The language to be used in the arbitral proceedings shall be [language].
  • The governing law of the contract shall be the substantive law of [jurisdiction].”

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