An arbitration clause is usually negotiated in the last hour of a transaction and read for the first time when a dispute has already begun. The most expensive arbitration disputes are often disputes about the clause itself.
Name the seat, not just the venue
The seat decides which courts supervise the arbitration and hear any challenge. Clauses that name only a 'venue', or name two cities, invite applications that delay the reference before it starts.
Choose institutional or ad hoc deliberately
Institutional rules supply appointment mechanisms, timelines and a secretariat. Ad hoc arbitration can be efficient between sophisticated parties, but leaves more to agreement — and more to the courts if agreement fails.
Plan for interim relief
Indian courts can grant interim measures under Section 9, and tribunals under Section 17. Where assets or evidence may move, emergency arbitrator provisions in the chosen rules can be decisive.
A short review of standard-form clauses across a contract portfolio is one of the most cost-effective pieces of dispute work a business can commission.
This note is general information, not legal advice. For advice on your own matter, see our Arbitration practice or contact the firm.
