​Review of Arbitration Agreements

Review of Arbitration Agreements
 
Arbitration agreements are contractual terms that outline the method for settling disputes between parties outside of court. Arbitration agreements must be evaluated for legality, correctness, and rationality to guarantee their efficacy and enforceability. The different features of arbitration agreements that need to be scrutinized will be examined in this article, and the significance of guaranteeing their legality will be emphasized.
 
 
First, the arbitration agreement's legitimacy must be assessed under fundamental contract law principles. This comprises the parties' ability to engage in a contract, the clarity of their intents, the fairness of the agreement, and the requirements or time restrictions for the agreement to take effect. These considerations are critical in establishing the legitimacy of the arbitration agreement and ensuring that it does not contradict obligatory laws or public policy.
 
Second, precision is another crucial factor that must be carefully considered. The following elements must be reviewed and confirmed regularly:
the name of the arbitration institution
the scope of the issues to be arbitrated
the location of the arbitration
the accuracy of the translation
the version number of the arbitration rules
the qualifications required for arbitrators
Moreover, it is vital to determine if the present arbitration agreement contradicts or clashes with earlier dispute resolution agreements.
 
Finally, it is essential to examine the rationality of the arbitration agreement's terms and conditions in line with the ninth item of the operational suggestion procedure. The parties have the flexibility to agree on the text of the arbitration agreement, subject to obligatory legislation and public policy of the arbitration venue. As a result, the arbitration agreement should contain the following:
 
Arbitration Institution: Since temporary arbitration is unreliable, choosing a globally known permanent arbitration institution is best, with ad hoc arbitration as an exception.
 
Location of Arbitration: The location of the arbitration is important because it influences the application of the legislation, nationality recognition of the arbitration award, and annulment of the arbitration decision. When deciding where to have arbitration, variables such as arbitration legislation, arbitration costs, the attorney representation system, the availability of appropriate arbitrators, arbitration facilities, geography, and language should be considered.
 
Arbitration Rules: Unless the parties have agreed differently, the arbitration will generally follow the arbitration rules of the arbitral institution. It is advised that while deciding on the arbitration rules, a specific arbitration rule be specified (such as the year of the arbitration rule version or the arbitration rule valid at the time of the arbitration application). Because of the complexities of the arbitration process, it is best to avoid using other arbitration institutions or model arbitration rules when choosing institutional arbitration.
 
Relevant Law: After examining numerous circumstances, the parties or their counsel may agree on the applicable law. Where there is no special agreement, the arbitration tribunal must use the substantive law of the arbitration venue or the controlling law of the primary contract to affirm the arbitration agreement's legality. For determining the application of procedural law, the arbitration panel shall use the arbitration legislation of the arbitration location.
 
Conflict of Laws: Owing to the complexities of conflict of laws, it is best to take care while deciding on their application to prevent increasing the uncertainty of the case result.
 
Language of Arbitration: If the parties or their attorneys have unique concerns, such as wishing to designate a certain language as the language of arbitration, this should be clearly stated in the arbitration agreement. When choosing the language of arbitration, it is essential to consider the language of the main contract, the language skill of the attorneys, and the cost of translation.
 
The location of the hearing varies from the site of the arbitration. Time and money should be considered when determining where to conduct the hearing. Otherwise, the arbitration panel can choose an appropriate location.
 
 
Lastly, the arbitration panel must be created. This includes selecting arbitrators, determining the number of arbitrators, and determining their required qualifications. The arbitration agreement should also state the grounds for disqualification and the process for selecting a replacement arbitrator.
 
Finally, arbitration agreements may successfully resolve disputes between parties, provided they are properly reviewed for legality, accuracy, and fairness. Examining these criteria may result in invalid or unenforceable agreements, leading to lengthy and costly legal battles. As a result, it is critical to get legal guidance and ensure that arbitration agreements are well-drafted, explicit, and detailed.