Use Of Arbitration Clauses In Commercial Agreements
The pros and cons of including a compromise clause in a contract require an individual assessment to correctly determine any difficulties in advance. The parties should carefully choose appropriate legislation. The current legislation of a contract can be decisive not only for its birth and validity, but also for determining whether disputes arising from or related to the contract can be subject to arbitration and what corrective measures can be granted by arbitrators. It is therefore always advisable to specify the legislation in force when drafting contracts. If the parties do not choose the applicable law, the arbitrators will make the choice for them. In this regard, it would be desirable to add to the standard clause the language of the procedure (even able to agree on two or more languages), the applicable material law, the number of arbitrators and the place of arbitration. The latter does not necessarily have to do with where the court sits, because it can do so where it deems it appropriate, but it is important because it will be where the parties can seek the assistance of the courts, especially in the application for precautionary measures, as they will be used to protect the goods at issue. since, although the arbitration tribunal is in a position to adopt these measures, because of their lack of empire, they will be exclusively binding on the parties, including the failure of the Arbitral Tribunal to issue orders such as seizure, seizure of assets or enforceable shipments against third parties that are not part of the arbitration agreement. That is why it is always necessary to ensure that the place of arbitration, as well as the place where the award will be carried out, has friendly legislation with this procedure, which governs the possibility of arbitration and mechanisms for the enforcement of arbitration awards; or, where its local legislation does not expressly provide for it, that it is at least a State Party to the Convention on the Recognition and Enforcement of Foreign Arbitration Awards. The parties can indicate the number of arbitrators in the arbitration clause or have it determined according to the applicable rules as soon as a dispute has arisen.
As a general rule, an arbitration is heard by one or three arbitrators (in fact, some countries write this or require it to be an odd number). It is advisable to provide the language of arbitration, as this will determine the language of written and oral interventions at each hearing. If it is not expressly provided, the court will decide the language. (i) The ability of the parties to choose the arbitrator (in the case of a single arbitrator) or the arbitrator (if it is an arbitration tribunal) to resolve the dispute without the ability of the designated arbitrator to rule in his favour. This power of the parties touches both on the specific issue of the issue in question (the ability to select an expert in this area ensures, in a certain way, that the dispute will be resolved”as it should be, „whether or not it is the reason”) and in the fact that the possibilities that the procedure could be tainted by issues of corruption are reduced; CANACO.- All disputes, disputes or claims arising from this contract or related to this contract, its non-compliance, revocation or nullity are settled by arbitration proceedings in accordance with the arbitration rules of the National Chamber of Commerce of Mexico City in force at the time of its inception.
Comments are closed.