Instructions for drafting provisions for dispute resolution by Arbitration

Article overview

Drafting provisions for dispute resolution by Arbitration is a step that helps parties establish a transparent dispute resolution process, clear about the rights and obligations of each party. Furthermore, choosing arbitration also brings flexibility and security of information, thereby strengthening the cooperative relationship between the parties. Through the article below, Long Phan will guide you in drafting terms for resolving disputes by Arbitration!

What does drafting a dispute resolution clause by Arbitration include?
What does drafting a dispute resolution clause by Arbitration include?

Benefits of agreeing to resolve disputes by arbitration

  • Arbitration procedures help disputes in commercial activities to be resolved more simply, the parties can be proactive in the time and place of dispute resolution, helping to speed up dispute resolution time.
  • Arbitration procedures do not go through many levels of trial like in court, so it limits the cost of time and money for businesses.
  • The right to choose an arbitrator to resolve disputes allows the parties to choose experts with expertise and practical experience in the dispute issue, reputable in the industry to become arbitrators to resolve the dispute of the parties, ensuring the quality of dispute resolution. (insurance disputes, disputes about stocks and securities; construction disputes,…).
  • Parties in a dispute can ensure their reputation in the marketplace thanks to confidentiality when resolving in arbitration.
  • The authority of the arbitration council is more flexible, and suitable for resolving disputes with foreign elements.
  • The arbitrator’s decision is final and binding on the parties.

Cases where the agreement to resolve disputes by Arbitration is invalid

Pursuant to Article 18 of the Law on Commercial Arbitration 2010 Article 3 of Resolution 01/2020/NQ/HDTP, cases where the agreement to resolve disputes by arbitration is invalid are:

  • Disputes arising in areas not under the jurisdiction of the Arbitrator specified in Article 2 of this Law.
  • The person who establishes the arbitration agreement does not have authority according to the provisions of law.
  • The person establishing the arbitration agreement does not have civil act capacity according to the provisions of the Civil Code.
  • The form of the arbitration agreement is not consistent with the provisions of Article 16 of this Law.
  • One of the parties was deceived, threatened, or coerced during the process of establishing the arbitration agreement and requested that the arbitration agreement be declared invalid.
  • The arbitration agreement violates legal prohibitions.
 When is the agreement for dispute resolution by arbitration considered null and void?
When is the agreement for dispute resolution by arbitration considered null and void?

Notes when drafting provisions for dispute resolution by Arbitration

When drafting provisions for dispute resolution by Arbitration, the following issues should be kept in mind:

  • Do the parties really want to resolve the dispute by commercial arbitration because without agreement and consensus from both parties, arbitration proceedings cannot be conducted?
  • Does the Arbitration dispute resolution clause exclude the Court’s intervention in dispute resolution, at least before the issuance of the Arbitration decision?
  • Is the content of the arbitration clause subject to invalid cases such as Article 18 of the Law on Commercial Arbitration 2010?
  • The arbitration clause is intended to resolve a dispute that has arisen or will arise in the future.
  • The arbitration agreement clause does not specifically stipulate the rights and obligations of the parties in the contract, but only stipulates how to resolve disputes by arbitration.
  • When drafting provisions for dispute resolution by arbitration, it must be clear, complete and accurate.

What does the dispute resolution clause by Arbitration include?

Pursuant to Article 14, Article 16, Clause 1, Article 43 of the Law on Arbitration 2010, provisions for dispute resolution by Arbitration include the following contents:

  • Any disputes are resolved by arbitration;
  • Right to request Arbitration to resolve disputes when disputes arise;
  • Arbitration form and organization chosen to resolve the case;
  • Place of dispute resolution or language used in arbitration proceedings;
  • When the terms take effect;
  • Cases where arbitration agreements are invalid
Content of the dispute resolution clause by Arbitration
Content of the dispute resolution clause by Arbitration

Guidance service on drafting provisions for dispute resolution by Arbitration

During the process of drafting provisions for dispute resolution by Arbitration, you will encounter difficult problems arising from legal regulations or negotiations. Understanding that, Long Phan provides comprehensive services related to commercial arbitration to support you, including:

  • Consulting on cases where arbitration agreements are invalid
  • Provide sample terms and instructions, support in drafting detailed provisions for dispute resolution by arbitration
  • Support in preparing documents to negotiate and draft provisions for dispute resolution by Arbitration.
  • Customer representative working with partners
  • Advise on effective solutions in case the dispute resolution clause by arbitration is invalid

To draft a dispute resolution clause by Arbitration, understanding the partner as well as preparing adequate and appropriate documents is necessary. If you need advice and support on the process of building and drafting provisions for dispute resolution by Arbitration, please contact via Hotline: 0906735386. Long Phan is always willing to listen to you.