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Model Clause: Permanent Court of Arbitration

  • MODEL CLAUSES FOR USE IN CONNECTION WITH THE PERMANENT COURT OF ARBITRATION OPTIONAL RULES

      

      

    MODEL CLAUSES

    MODEL ARBITRATION CLAUSES

    FOR USE IN CONNECTION WITH THE PERMANENT COURT

    OF ARBITRATION OPTIONAL RULES FOR ARBITRATING

    DISPUTES BETWEEN TWO STATES

    Future Disputes 

    Parties to a bilateral treaty or other agreement who wish to have any dispute referred

    to arbitration under these Rules may insert in the treaty or agreement an arbitration

    clause in the following form:1

    1. If any dispute arises between the parties as to the interpretation, application or 

    performance of this [treaty] [agreement], including its existence, validity or 

    termination, either party may submit the dispute to final and binding arbitration 

    in accordance with the Permanent Court of Arbitration Optional Rules for 

    Arbitrating Disputes between Two States, as in effect on the date of this [treaty] 

    [agreement]. 

    Parties may wish to consider adding:

    2. The number of arbitrators shall be . . . [insert 'one', 'three', or 'five'].2

    3. The language(s) to be used in the arbitral proceedings shall be . . . [insert

    choice of one or more languages].3

    4. The appointing authority shall be . . . [insert choice].4

    Existing Disputes 

    If the parties have not already entered into an arbitration agreement, or if they

    mutually agree to change a previous agreement in order to provide for arbitration under

    these Rules, they may enter into an agreement in the following form:

    The parties agree to submit the following dispute to final and binding 

    arbitration in accordance with the Permanent Court of Arbitration Optional 

    Rules for Arbitrating Disputes between Two States, as in effect on the date of 

    this agreement: . . . [insert brief description of dispute].

    Parties may wish to consider adding paragraphs 2-4 of the arbitration clause for future

    disputes as set forth above.

    PERMANENT COURT OF ARBITRATION - BASIC DOCUMENTS

    NOTES

    1. Parties may agree to vary this model clause. If they consider doing so, they may

    consult with the Secretary-General of the Permanent Court of Arbitration to ensure that

    the clause to which they agree will be appropriate in the context of the Rules, and that

    the functions of the Secretary-General and the International Bureau can be carried out

    effectively.

    2. If the parties do not agree on the number of arbitrators, the number shall be three,

    in accordance with article 5 of the Rules.

    3. If the parties do not agree on the language, or languages, to be used in the arbitral

    proceedings, this shall be determined by the arbitral tribunal in accordance with article

    17 of the Rules.

    4. Parties are free to agree upon any appointing authority, e.g., the President of the

    International Court of Justice, or the head of a specialized body expert in the relevant

    subject-matter, or an ad-hoc panel chosen by the parties, or any other officer, institution

    or individual. The Secretary-General of the Permanent Court of Arbitration will consider

    accepting designation as appointing authority in appropriate cases. Before inserting the

    name of an appointing authority in an arbitration clause, it is advisable for the parties to

    inquire whether the proposed authority is willing to act.

    If the parties do not agree on the appointing authority, the Secretary-General of the

    Permanent Court of Arbitration at The Hague will designate the appointing authority in

    accordance with article 6 or 7 of the Rules, as the case may be.

    MODEL CLAUSES

    MODEL ARBITRATION CLAUSES

    FOR USE IN CONNECTION WITH THE PERMANENT COURT

    OF ARBITRATION OPTIONAL RULES FOR ARBITRATING DISPUTES

    BETWEEN TWO PARTIES OF WHICH ONLY ONE IS A STATE

    Future Disputes 

    Where a State and a private entity are parties to a contract and wish to have any

    dispute referred to arbitration under these Rules, they may insert in the contract an

    arbitration clause in the following form:

    1. If any dispute arises between the parties as to the interpretation, application or 

    performance of this contract, including its existence, validity or termination, either 

    party may submit the dispute to final and binding arbitration in accordance with 

    the Permanent Court of Arbitration Optional Rules for Arbitrating Disputes 

    between Two Parties of Which Only One Is a State, as in effect on the date of this 

    contract.1

    Parties may wish to consider adding:

    2. The number of arbitrators shall be . . . [insert 'one' or 'three'].2

    3. The language(s) to be used in the arbitral proceedings shall be . . . [insert choice

    of one or more languages].3

    4. The appointing authority shall be . . . [insert choice].4

    5. This agreement to arbitrate constitutes a waiver of any right to sovereign immunity 

    from execution to which a party might otherwise be entitled with respect to the 

    enforcement of any award rendered by an arbitral tribunal constituted pursuant 

    to this agreement.5

    Existing Disputes 

    If the parties have not already entered into an arbitration agreement, or if they

    mutually agree to change a previous agreement in order to provide for arbitration under

    these Rules, they may enter into an agreement in the following form:

    The parties agree to submit the following dispute to final and binding 

    arbitration in accordance with the Permanent Court of Arbitration Optional 

    Rules for Arbitrating Disputes between Two Parties of Which Only One Is a State, as in effect on the date of this agreement: . . . [insert brief description of

    dispute].

    Parties may wish to consider adding paragraphs 2-5 of the arbitration clause for future

    disputes as set forth above.

    NOTES

    1. Parties may agree to vary this model clause. If they consider doing so, they may

    consult with the Secretary-General of the Permanent Court of Arbitration to ensure that

    the clause to which they agree will be appropriate in the context of the Rules, and that

    the functions of the Secretary-General and the International Bureau can be carried out

    effectively.

    2. If the parties do not agree on the number of arbitrators, the number shall be three,

    in accordance with article 5 of the Rules.

    3. If the parties do not agree on the language, or languages, to be used in the arbitral

    proceedings, this shall be determined by the arbitral tribunal in accordance with article

    17 of the Rules.

    4. Parties are free to agree upon any appointing authority, e.g., the President of the

    International Court of Justice, or the head of a specialized body expert in the relevant

    subject-matter, or an ad-hoc panel chosen by the parties, or any other officer, institution

    or individual. The Secretary-General of the Permanent Court of Arbitration will consider

    accepting designation as appointing authority in appropriate cases. Before inserting the

    name of an appointing authority in an arbitration clause, it is advisable for the parties to

    inquire whether the proposed authority is willing to act.

    If the parties do not agree on the appointing authority, the Secretary-General of the

    Permanent Court of Arbitration at The Hague will designate the appointing authority in

    accordance with article 6 or 7 of the Rules, as the case may be.

    5. Waiver of sovereign immunity from jurisdiction is provided in article 1, paragraph

    2 of the Rules.

    MODEL ARBITRATION CLAUSES 

    FOR USE IN CONNECTION WITH THE PERMANENT COURT

    OF ARBITRATION OPTIONAL RULES FOR ARBITRATION INVOLVING

    INTERNATIONAL ORGANIZATIONS AND STATES

    Future Disputes 

    Where an international organization, and a State or an international organization are

    parties to an agreement and wish to have any disputes referred to arbitration under these

    Rules, they may insert in the agreement an arbitration clause in the following form:

    1. Any dispute, controversy or claim arising out of or relating to the interpretation, 

    application or performance of this agreement, including its existence, validity or 

    termination, shall be settled by final and binding arbitration in accordance with 

    the Permanent Court of Arbitration Optional Rules for Arbitration Involving 

    International Organizations and States, as in effect on the date of this agreement.1

    Parties may wish to consider adding:

    2. The number of arbitrators shall be . . . [insert 'one', 'three' or 'five'].2

    3. The language(s) to be used in the arbitral proceedings shall be . . . [insert choice

    of one or more languages].3

    4. The appointing authority shall be . . . [insert choice].4

    Existing Disputes 

    If the parties have not already entered into an arbitration agreement, or if they

    mutually agree to change a previous agreement in order to provide for arbitration under

    these Rules, they may enter into an agreement in the following form:

    The parties agree to submit the following dispute to final and binding 

    arbitration in accordance with the Permanent Court of Arbitration Optional 

    Rules for Arbitration Involving International Organizations and States, as in 

    effect on the date of this agreement: . . . [insert brief description of dispute].

    Parties may wish to consider adding paragraphs 2-4 of the arbitration clause for future

    disputes as set forth above.

    NOTES

    1. Parties may agree to vary this model clause. If they consider doing so, they may

    consult with the Secretary-General of the Permanent Court of Arbitration to ensure that

    the clause to which they agree will be appropriate in the context of the Rules, and that

    the functions of the Secretary-General and the International Bureau can be carried out

    effectively.

    2. If the parties do not agree on the number of arbitrators, the number shall be three,

    in accordance with article 5 of the Rules.

    3. If the parties do not agree on the language, or languages, to be used in the arbitral

    proceedings, this shall be determined by the arbitral tribunal in accordance with article

    17 of the Rules.

    4. Parties are free to agree upon any appointing authority, e.g., the President of the

    International Court of Justice, or the head of a specialized body expert in the relevant

    subject-matter, or an ad-hoc panel chosen by the parties, or any other officer, institution

    or individual. The Secretary-General of the Permanent Court of Arbitration will consider

    accepting designation as appointing authority in appropriate cases. Before inserting the

    name of an appointing authority in an arbitration clause, it is advisable for the parties to

    inquire whether the proposed authority is willing to act.

    If the parties do not agree on the appointing authority, the Secretary-General of the

    Permanent Court of Arbitration at The Hague will designate the appointing authority in

    accordance with article 6 or 7 of the Rules, as the case may be.

    MODEL ARBITRATION CLAUSES

    FOR USE IN CONNECTION WITH THE PERMANENT COURT

    OF ARBITRATION OPTIONAL RULES FOR ARBITRATION BETWEEN

    INTERNATIONAL ORGANIZATIONS AND PRIVATE PARTIES

    Future Disputes 

    Where an international organization and a party that is neither a State nor an international

    organization are parties to an agreement and wish to have any disputes referred

    to arbitration under these Rules, they may insert in the contract an arbitration clause in

    the following form:

    1. Any dispute, controversy or claim arising out of or relating to the interpretation, 

    application or performance of this contract, including its existence, validity or 

    termination, shall be settled by final and binding arbitration in accordance with 

    the Permanent Court of Arbitration Optional Rules for Arbitration between 

    International Organizations and Private Parties, as in effect on the date of this 

    agreement.1

    Parties may wish to consider adding:

    2. The number of arbitrators shall be . . . [insert 'one' or 'three'].2

    3. The language(s) to be used in the arbitral proceedings shall be . . . [insert choice

    of one or more languages].3

    4. The appointing authority shall be . . . [insert choice].4

    5. This agreement to arbitrate constitutes a waiver of any right to immunity from 

    execution to which a party might otherwise be entitled with respect to the enforcement 

    of any award rendered by an arbitral tribunal constituted pursuant to this 

    agreement.5

    Existing Disputes 

    If the parties have not already entered into an arbitration agreement, or if they

    mutually agree to change a previous agreement in order to provide for arbitration under

    these Rules, they may enter into an agreement in the following form:

    The parties agree to submit the following dispute to final and binding arbitration 

    in accordance with the Permanent Court of Arbitration Optional 

    Rules for Arbitration between International Organizations and Private Parties, as in effect on the date of this agreement: . . . [insert brief description

    of dispute].

    Parties may wish to consider adding paragraphs 2-5 of the arbitration clause for future

    disputes as set forth above.

    NOTES

    1. Parties may agree to vary this model clause. If they consider doing so, they may consult

    with the Secretary-General of the Permanent Court of Arbitration to ensure that the clause

    to which they agree will be appropriate in the context of the Rules, and that the functions of

    the Secretary-General and the International Bureau can be carried out effectively.

    2. If the parties do not agree on the number of arbitrators, the number shall be three, in

    accordance with article 5 of the Rules.

    3. If the parties do not agree on the language, or languages, to be used in the arbitral

    proceedings, this shall be determined by the arbitral tribunal in accordance with article 17 of

    the Rules.

    4. Parties are free to agree upon any appointing authority, e.g., the President of the

    International Court of Justice, or the head of a specialized body expert in the relevant

    subject-matter, or an ad-hoc panel chosen by the parties, or any other officer, institution or

    individual. The Secretary-General of the Permanent Court of Arbitration will consider

    accepting designation as appointing authority in appropriate cases. Before inserting the name

    of an appointing authority in an arbitration clause, it is advisable for the parties to inquire

    whether the proposed authority is willing to act.

    If the parties do not agree on the appointing authority, the Secretary-General of the

    Permanent Court of Arbitration at The Hague will designate the appointing authority in

    accordance with article 6 or 7 of the Rules, as the case may be.

    5. Waiver of immunity from jurisdiction is provided in article 1, paragraph 2 of the Rules.

    MODEL CONCILIATION CLAUSES 

    FOR USE IN CONNECTION WITH THE PERMANENT COURT

    OF ARBITRATION OPTIONAL CONCILIATION RULES

    Future Disputes 

    If any dispute arises between the parties as to the interpretation, application or

    performance of this [treaty] [agreement] [contract], including its existence, validity or

    termination, either party may invite the other to conciliate the dispute under the

    Permanent Court of Arbitration Optional Conciliation Rules as in effect on the date

    hereof.

    Parties may wish to consider adding:

    In any such conciliation: 

    1. The number of conciliators shall be . . . [insert 'one', 'two', or 'three']

    2. The language(s) to be used in the conciliation shall be . . . [insert choice of one or

    more languages].

    3. The parties agree that . . . [insert 'the conciliator(s)' or 'the third conciliator']

    shall be appointed by . . . [insert choice of 'The Secretary-General of the 

    Permanent Court of Arbitration' or the name of another person or institution], or:

    The parties agree that the Secretary-General of the Permanent Court of 

    Arbitration shall designate an institution or person to appoint the . . . [insert 'the 

    conciliator(s)' or 'the third conciliator'].

    Existing Disputes 

    The parties agree to commence conciliation of the following dispute under the 

    Permanent Court of Arbitration Optional Conciliation Rules as in effect on the 

    date hereof: . . . [insert brief description of dispute].

    Parties may wish to consider adding paragraphs 2(a)-2(c) of the Model Clause for

    conciliating future disputes as set forth above.

    MODEL ARBITRATION CLAUSES

    FOR USE IN CONNECTION WITH THE PERMANENT COURT

    OF ARBITRATION OPTIONAL RULES FOR ARBITRATION OF DISPUTES

    RELATING TO NATURAL RESOURCES AND/OR THE ENVIRONMENT

    Future Disputes 

    Parties may choose to include the following model clause in agreements to have disputes

    referred to arbitration under the PCA Optional Rules for Arbitration of Disputes Relating

    to Natural Resources and/or the Environment:

    1. Any dispute, controversy, or claim arising out of or relating to the interpretation, 

    application or performance of this agreement, including its existence, validity, or 

    termination, shall be settled by final and binding arbitration in accordance with 

    the Permanent Court of Arbitration Optional Rules for Arbitration of Disputes 

    Relating to Natural Resources and/or the Environment, as in effect on the date of 

    this agreement. The International Bureau of the Permanent Court of Arbitration 

    shall serve as Registry for the proceedings. 

    Parties may wish to consider adding:

    2. The number of arbitrators shall be [insert 'one', 'three', or 'five'].

    3. The language(s) to be used in the arbitral proceedings shall be [insert choice of

    one or more languages].

    4. The appointing authority shall be [the Secretary-General of the Permanent Court 

    of Arbitration], [or insert choice].

    Existing Disputes 

    If the Parties have not already entered into an arbitration agreement, or if they mutually

    agree to modify a previous agreement in order to provide for arbitration under the PCA

    Optional Rules for Arbitration of Disputes Relating to Natural Resources and/or the

    Environment, they may enter into an agreement in the following form:

    1. The Parties agree to submit the following dispute to final and binding arbitration 

    in accordance with the Permanent Court of Arbitration Optional Rules for 

    Arbitration of Disputes Relating to Natural Resources and/or the Environment, as 

    in effect on the date of this agreement: [insert brief description of dispute].

    2. Parties may wish to consider adding additional information as set forth above in

    paragraphs 2-4 in 'Future Disputes'.

    MODEL ARBITRATION CLAUSE

    FOR USE IN CONNECTION WITH THE ARBITRATION OF DISPUTES BEING

    CONCILIATED UNDER THE PERMANENT COURT OF ARBITRATION

    OPTIONAL RULES FOR CONCILIATION OF DISPUTES RELATING TO

    NATURAL RESOURCES AND/OR THE ENVIRONMENT

    In the event that a dispute being conciliated under the Permanent Court of Arbitration 

    Optional Rules for Conciliation of Disputes Relating to Natural Resources and/or the 

    Environment has not been settled pursuant to said Rules within 90 days of filing an 

    invitation to conciliate, or within such other period as the parties may agree in writing, 

    or when some aspect of the dispute is unresolved notwithstanding the terms of a 

    settlement agreement reached pursuant to Article 12 of said Rules, such dispute shall be 

    finally settled under the Permanent Court of Arbitration Optional Rules for Arbitration 

    of Disputes Relating to Natural Resources and/or the Environment by one or more 

    arbitrators appointed in accordance with the said Rules of Arbitration. No admission 

    or proposal formulated during the course of the conciliation procedure, either by one 

    of the Parties or by the Conciliation Commission, can be considered as prejudicing the 

    rights or the contentions of either Party in the event of the failure of the procedure.