Arbitration

In today's competitive marketplace, most companies either cannot afford or do not wish to incur the time, expense and
adverse
business consequences of traditional litigation. Unfortunately, in every business relationship there is the potential for conflict
over contractual agreements or business operations. When such conflicts arise, there is no need to incur the onerous expense and
delays involved in traditional litigation. There are readily available alternative dispute resolution procedures that will enable you
to resolve your disputes relatively quickly, fairly and cost-effectively.
Planning is the key to avoiding the adverse effects of litigation. The optimal time for businesses to implement strategies for
avoidance of those adverse effects is before any dispute arises. Therefore, that whenever you negotiate or enter into a contract,
you should carefully consider and decide on the procedures that will govern the resolution of any disputes that may arise in the
course of the contractual relationship. By doing this before any dispute arises, you avoid the difficulties of attempting to negotiate
dispute resolution procedures when you are already in the midst of a substantive dispute that may have engendered a lack of trust
on both sides.
Law of Arbitration in India
Law of Arbitration in India is governed by-
 Arbitration and Conciliation Act,1996

Section 7 of the Act defines the term, Arbitration agreement.—
(1) In this Part, “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which
have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.
(2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
(3) An arbitration agreement shall be in writing.
(4) An arbitration agreement is in writing if it is contained in—
(a) a document signed by the parties;
(b) an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or
(c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not
denied by the other.
(5) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract
is in writing and the reference is such as to make that arbitration clause part of the contract.
Templates offers sample dispute resolution clauses that may be inserted into a contract prior to any dispute ever arising. These
sample dispute resolution clauses are set forth and, in some cases, briefly discussed inside.
STANDARD ARBITRATION CLAUSES
Templates standard clauses separately providing for submission of domestic and international disputes to arbitration. While these
clauses set forth no details as to procedures to be followed in connection with any such arbitrations, they provide a simple means
of assuring that any future dispute will be arbitrated. An additional benefit is that it is sometimes easier for contracting parties to
agree to simple, straightforward clauses than to some of the more complex provisions that are set forth in subsequent sections of
this page.
Standard Arbitration Clause for Domestic Commercial Contracts

Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement,
interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be
determined by arbitration in [insert the desired place of arbitration] before [one/three] arbitrator(s). This clause shall not preclude
parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.
Standard Arbitration Clause for International Commercial Contracts
Any dispute, controversy or claim arising out of or relating to this contract, including the formation, interpretation, breach or
termination thereof, including whether the claims asserted are arbitrable, will be referred to and finally determined by arbitration
in accordance with the Arbitration Rules. The Tribunal will consist of [three arbitrators/one arbitrator]. The place of arbitration

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In today's competitive marketplace, most companies either cannot afford or do not wish to incur the time, expense and

 Arbitration and Conciliation Act,1996

Standard Arbitration Clause for Domestic Commercial Contracts

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