The clause is more than closing boilerplate
An arbitration clause determines where and under which rules a dispute will be resolved. An ambiguous institution, conflicting choices of arbitration and state courts, or an unclear scope may trigger a preliminary dispute before the merits are considered. Check arbitrability and the applicable requirements for the agreement’s form. [1]
Specify the institution, seat and rules
Institutional and ad hoc arbitration have different administrative arrangements. Name the institution and rules accurately. The legal seat is not merely a convenient hearing venue: it connects the arbitration with a national procedural framework and supervisory courts. Holding a hearing elsewhere does not necessarily change the agreed seat. [1] [2]
Match language and tribunal size to the dispute
Agree on language, the number of arbitrators and appointment arrangements. These choices influence translation costs and procedural organisation. Three arbitrators are not automatically preferable for every dispute. Consider the contract value, evidence and the parties’ practical ability to fund proceedings. [2]
Plan interim protection and enforcement
Consider where the counterparty’s assets are located and whether interim protection could be necessary. The relationship between court assistance and arbitration depends on applicable law. The New York Convention may govern enforcement of a foreign award, but it does not eliminate the recognition process or the grounds on which enforcement may be refused. [1] [3]
A practical pre-signing check
Read the clause together with the governing-law, negotiation, mediation and notices provisions. Ensure different contract sections do not send the same dispute to incompatible forums. Before proceedings, provide counsel with the complete contract, amendments, arbitration agreement and available asset information. A screenshot of the clause alone rarely gives the full picture.