Drafting Arbitration Agreements - the Basics

𝗪𝗮𝗻𝘁 𝘁𝗼 𝗮𝘃𝗼𝗶𝗱 𝗰𝗼𝘀𝘁𝗹𝘆 𝗺𝗶𝘀𝘁𝗮𝗸𝗲𝘀 𝗶𝗻 𝗮𝗿𝗯𝗶𝘁𝗿𝗮𝘁𝗶𝗼𝗻?𝙎𝙩𝙖𝙧𝙩 𝙬𝙞𝙩𝙝 𝙩𝙝𝙚 𝙢𝙤𝙙𝙚𝙡 𝙘𝙡𝙖𝙪𝙨𝙚 𝙤𝙛 𝙩𝙝𝙚 𝙘𝙝𝙤𝙨𝙚𝙣 𝙞𝙣𝙨𝙩𝙞𝙩𝙪𝙩𝙞𝙤𝙣!

In practice, poorly drafted arbitration clauses are among the top sources of procedural complications—and can even render awards unenforceable.

To help you get it right, we’ve created a visual guide covering the basics of arbitration clause drafting, including model clauses from commonly used arbitral institutions and examples of failed dispute clauses.

𝙊𝙪𝙧 𝙩𝙖𝙠𝙚 𝙤𝙣 𝙩𝙝𝙚 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙛 𝙖𝙧𝙗𝙞𝙩𝙧𝙖𝙩𝙤𝙧𝙨?

Opt for a three-member tribunal rather than a sole arbitrator.

Over the years, we’ve become convinced that the cost savings of a sole arbitrator rarely outweigh the trade-offs: reduced predictability and greater uncertainty in the outcome of the process.

When parties disagree on who the sole arbitrator should be, a likely situation once a dispute escalates beyond amicable dispute resolution attempts, appointment ends up in the hands of the institution or supporting judge.

As in any profession, arbitrators vary in quality. We find it far safer to pay triple the price of arbitrators’ fees than to risk an unsuitable sole arbitrator deciding our clients’ disputes.

𝘕𝘰𝘵 𝘢𝘯 𝘢𝘳𝘣𝘪𝘵𝘳𝘢𝘵𝘪𝘰𝘯 𝘦𝘹𝘱𝘦𝘳𝘵 𝘺𝘦𝘵?

Dive into the Astute 30-minute video guide on the arbitration process:📽️ https://www.astutedr.com/post/the-astute-arbitration-video-guide-your-essential-30-minute-arbitration-guide-from-start-to-finish