{"id":188479,"date":"2024-05-29T05:25:30","date_gmt":"2024-05-29T04:25:30","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=188479"},"modified":"2024-05-29T05:47:10","modified_gmt":"2024-05-29T04:47:10","slug":"defective-arbitration-clauses","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/defective-arbitration-clauses\/","title":{"rendered":"Reasons Why Arbitration Clauses for Commercial Disputes May Be Defective"},"content":{"rendered":"\n

Falling into a commercial dispute can cause many problems for your business. One way to resolve a commercial dispute is by obtaining a court order through arbitration. Arbitration or international commercial arbitration is an alternative dispute resolution<\/a> (ADR) method, similar to mediation and negotiation. However, although both parties’ intentions may be to use the arbitration process, this may not be possible if you have a defective arbitration clause. This article will explain why arbitration clauses may be defective. <\/p>\n\n\n\n

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How to Manage a Business Dispute<\/div>\n
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This fact sheet outlines how your business can manage a dispute.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

What is Commercial Arbitration? <\/h2>\n\n\n\n

Commercial arbitration<\/a> is a form of alternative dispute resolution (ADR). It is where you choose an arbitral panel to decide upon the result of your dispute. Arbitration consists of one or more expert arbitrators who will listen to both arguments in the dispute and attempt to resolve it with a binding arbitral award. <\/p>\n\n\n\n

As part of your contract, you might have a disputes clause outlining arbitration as your preferred method of dispute resolution. This means that if future disputes arise, you agree to use arbitration to settle the matter between contracting parites.<\/p>\n\n\n\n

Alternatively, you might enter a separate arbitration agreement. The purpose of either of these methods is to confirm your intention to use arbitration to resolve potential disputes rather than proceeding to court straightaway.\u00a0<\/p>\n\n\n\n

Unfortunately, there may be situations where your arbitration clause is defective. <\/p>\n\n\n\n

Why Might My Arbitration Clause Be Defective?<\/h2>\n\n\n\n

Defective arbitration clauses in commercial contracts often result from the following:<\/p>\n\n\n\n