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1. What disputes are covered?
An arbitration clause identifies a route for resolving disputes. Check whether it is limited to payment claims or also addresses termination and validity issues. Review the whole contract for a conflicting court-jurisdiction clause rather than reading the arbitration paragraph in isolation.
2. Is the institution correctly identified?
Where institutional arbitration is intended, identify the institution and rules accurately. ICC and ISTAC are different institutions. Mixing names and rules without a deliberate design can create an avoidable dispute at the outset. Current model clauses are useful starting points, but transaction-specific modifications need review.
3. Seat or hearing venue?
The seat is a legal connection, not simply the room in which a hearing takes place. It remains important even if participants expect to meet online. Consider its procedural-law consequences and the role of the relevant courts when deciding where to seat the arbitration.
4. Are language and tribunal size practical?
A proceedings language different from the transaction documents may increase translation work. Consider tribunal size against the amount and complexity in dispute. Choosing three arbitrators for every contract, or assuming arbitration is always cheaper, is not a sound budgeting method.
5. Which law answers which question?
The law governing the substantive contract, the law applicable to the arbitration agreement and the procedural law at the seat are distinct concepts. Ask what each choice is intended to govern. One general governing-law sentence should not be assumed to resolve every issue.
6. Can the preliminary steps actually work?
If negotiation or mediation comes first, make the initiating notice, period and transition to the next stage understandable. Consider what happens if the other side does not respond and what urgent relief may be available.
Before signing, gather the full contract, annexes and the counterparty’s exact legal name. Read the clause as a route that someone may have to follow, rather than an unchangeable paragraph added at the end.
Sources and further reading
The examples are hypothetical. The governing law, banking documents and contract terms need to be assessed for the particular transaction.
Related reading: Enforcing a foreign arbitral award
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