Options

Arbitration clause

Court of law

0ption C

Options

In case of disputes resulting from the performance of underlying contracts, the dispute provisions of such contracts should prevail.

• The first option provides a clause on arbitration.
• The second option provides a jurisdiction clause, where the choice of a jurisdiction is to be agreed in the case where the parties decide that dispute will be referred to court.
• A third option leaves open the choice between arbitration or court of law.

It should perhaps be emphasized that because of the rela-tionships that Electronic Data Interchange creates between users there is a great potential for dispute to be resolved by negotiation. It is only when such negotiations fail that the clauses on dispute resolution will become effective and useful.

Arbitration clause (Option A)

Parties may wish to decide to resolve their dispute by way of arbitration. Arbitration may prove a practical procedure to resolve a dispute involving parties of different countries. It offers the advantage of the choice of arbitrator(s) or of the appointing authority and of a more speedy procedure although this is not always the rule. It can be attractive for the confidentiality of the procedure, which is sometimes favoured by parties. The arbitration award is in principle final although appeal is possible.

Many countries still require a written and clear statement on arbitration when this is the choice of dispute resolution and the parties are therefore advised to include such clause.

The clause offered for inclusion in the agreement under option A refers to the rules of concilation and arbitration of the International Chamber of Commerce. The parties need to define how the arbitrator will be nominated. A choice can be made between one or three person(s) nominated by agreement or in case of failure of an agreement on the arbitrator(s), an appointing authority can proceed to the nomination. The parties should therefore indicate which will be the appointing authority. In addition it can be determined by parties in which language the arbitration procedure should be conducted.

Court of law (Option B)

In the case the parties intend to have their litigation solved by a court, the second alternative provision provides for the parties to choose the competent court and stipulate it in their agreement. In the case where the parties do no make such a choice, the competent court shall be determined by reference to e.g. the Convention on jurisdiction and the enforcement of judgments in civil and commercial matters.

0ption C

If parties do not want to exclude up front one of the methods of dispute resolution this option can be selected.

• In case of disputes resulting from performance of underlying contracts the dispute provision of such contract shall apply.
• Option A: Arbitration.

  Any disputes between the Parties arising from or relating to this agreement shall be finally settled in accordance with the conciliation and arbitration of regulations of the International Chamber of Commerce, by one or more arbitrators appointed in pursuance of these regulations and there shall be no right of appeal nor recourse of any kind.

  Option B: Court of Law.

  Any dispute arising out of or in connection with this Agreement shall be referred to the competent Court of [insert name of country], which shall have sole jurisdiction.

  Option C: Arbitration or Court of law.

  Unless the Parties agree in writing to submit the matter to arbitration or other procedure for the resolution of dis pute, or to select a different jurisdiction any matter or dispute arising from, out of or in connection with this Agreement as to its validity, interpretation, construction or performance shall be subject to sole and exclusive jurisdiction of the [insert name of country] Court.