1. ARBITRATION
The standard clause which is recommended for
insertion in agreements where arbitration is the desired method of
resolving a dispute is:
'Any dispute or difference whatsoever arising
out of or in connection with this contract shall be submitted to
arbitration in accordance with, and subject to, The Institute of
Arbitrators & Mediators Australia Rules for the Conduct of
Commercial Arbitrations'.
Unless the parties agree upon an arbitrator,
either party may request a nomination from either the President OR
the Chapter Chairman of the Chapter where the dispute
arises.
2. EXPEDITED ARBITRATION in small
disputes and/or where quantum is limited or
restricted
To limit the potential cost of small disputes
an additional phrase may be added to the arbitration clause which
restricts the right of a formal hearing to when the quantum in
dispute is above a certain, agreed amount. For example:
'Any dispute or difference whatsoever arising
out of or in connection with this contract shall be submitted to
arbitration in accordance with, and subject to, The Institute of
Arbitrators & Mediators Australia Expedited Commercial
Arbitration Rules. For disputes in which the quantum is less than $
(include amount here - usually $50,000 or under) arbitration shall
take place using the submission of documents alone unless both
parties agree otherwise.'
3. MEDIATION -
ARBITRATION
Where mediation is the desired method of
resolving a dispute and where, if the dispute is not settled by
mediation and you require this further option, the dispute is
referred to arbitration is:
'Any dispute or difference whatsoever arising
out of or in connection with this contract shall be submitted to
mediation in accordance with, and subject to, The Institute of
Arbitrators & Mediators Australia Mediation and Conciliation
Rules.'
Add the following if you require the matter
to go onto arbitration if not settled.
'If the dispute or difference is not settled
within 30 days of the submission to mediation (unless such period
is extended by agreement of the parties), it shall be and is hereby
submitted to arbitration in accordance with, and subject to, The
Institute of Arbitrators & Mediators Australia Rules for the
Conduct of Commercial Arbitrations'.
'Notwithstanding the existence of a dispute
or difference each party shall continue to perform the
Contract'.
4. INTERNATIONAL
ARBITRATION
'Any dispute or difference whatsoever arising
out of or in connection with this contract shall be and is hereby
submitted to arbitration in accordance with, and subject to, the
UNCITRAL Arbitration Rules. The appointing and administering body
shall be The Institute of Arbitrators and Mediators Australia
(IAMA). There shall be one arbitrator, the language of the
arbitration shall be English, the place of the arbitration shall be
(nominate city in Australia).'
Please note:
- The parties may designate different rules
to the UNCITRAL Arbitration Rules.
- The parties may provide for 3
arbitrators.
- The parties may designate a language other
than English.