{"id":189534,"date":"2024-07-30T07:27:27","date_gmt":"2024-07-30T06:27:27","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=189534"},"modified":"2024-07-30T07:29:23","modified_gmt":"2024-07-30T06:29:23","slug":"arbitration-clauses-international-contract","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/arbitration-clauses-international-contract\/","title":{"rendered":"What Types Of Arbitration Clauses Can Be Included In An International Contract?"},"content":{"rendered":"\n

As a business owner, you will inevitably enter into complicated commercial contracts. When you draft a contract, one term you may include is an arbitration clause<\/a>. This dispute resolution process will be in place to use for any future disputes. Your commercial contracts may be international contracts, which means you and the other company are in different jurisdictions. There are different types of arbitration clauses as the dispute resolution method. This article will explain the types of arbitration clauses that can be included in your international contract.<\/p>\n\n\n\n

What is Arbitration?<\/h3>\n\n\n\n

Arbitration is a formal type of alternative dispute resolution<\/a> (ADR) that you may choose to use for your commercial dispute. It is an alternative to court litigation but still follows specific rules and procedures.<\/p>\n\n\n\n

Arbitration is where you and the other party appoint an arbitrator or a panel of arbitrators to resolve the commercial dispute. They will be experts in the type of dispute and may have industry knowledge. You are more likely to choose a panel of arbitrators rather than a sole arbitrator. Moreover, you and the opposing party will provide evidence for your argument, which an arbitrator will review. Following this arrangement, the arbitrator will make a formal binding decision on the disagreement.<\/p>\n\n\n\n

What Type of Arbitration Clauses Can Be Included in an International Contract?<\/h3>\n\n\n\n

It is vital to your contract that your arbitration clause is well-drafted to avoid confusion and resolve your dispute effectively. It is also essential to know that there is no standard arbitration clause. Instead, arbitration clauses need to be written according to the circumstances of the commercial contract. If you have an international contract, there are several arbitration clauses, which are addressed below.<\/p>\n\n\n\n

1. Basic Clauses<\/h3>\n\n\n\n

A basic arbitration clause is a clause that will include all the necessary provisions to allow an arbitration agreement to work. Basic arbitration clauses are commonly used.<\/p>\n\n\n\n

2. General Clauses<\/h3>\n\n\n\n

Where the contract is a substantial commercial transaction, a general clause will likely be used. General clauses detail specific issues that are relevant to the potential arbitration and are particularly important where you and the other party are located in different countries. Details in a general clause may include: