Drafting Principles for Arbitration Clauses

Drafting principles for arbitration clauses aim to ensure clarity and effectiveness. They should specify the agreement to resolve disputes through arbitration rather than courts, clearly identify the governing rules and arbitration institution if any, and determine the seat (location) of arbitration, which affects procedural law. The clause should cover the scope of disputes included, the language, and the number of arbitrators. Additionally, it should be unambiguous to prevent misunderstandings, maintain enforceability in different jurisdictions, and reflect the parties’ intentions. Well-drafted clauses facilitate smooth dispute resolution and reduce potential conflicts over procedural details.