A Practical Guide to International Arbitration in London

Chapter 3 Understanding Arbitration Clauses

Introduction

Towards the end of many international contracts, there appears, almost as an afterthought, an arbitration clause. One can visualise clients after many long hours of drafting and negotiation being advised by their respective lawyers to insert a dispute resolution clause into the contract, a breakdown of relations probably being the last thing on any client’s mind in the euphoria of a successfully concluded business deal. Yet parties do break contracts and a means of resolving the consequent issues that arise is essential.

The problem with scant attention frequently being given to the arbitration clause is that a poorly drafted or defective clause, referred to as a "pathological arbitration ...