Commercial arbitration contract: Things to note

August 15, 2024

1. Necessary provisions in the arbitration contract

Agreement on dispute resolution in arbitration
Law applicable to the Contract
Arbitration Location
Number of member referees
Language used (only applicable if there is a foreign dispute)
How to draft an arbitration contract

2. How to draft an arbitration contract

Below is a sample Arbitration Agreement:

ARBITRATION AGREEMENT

Arbitration Agreement This is made on…../…./…..at…..between and by:

PARTY A. GRANDPARENTS……(For individuals); Or COMPANY……………………….

Date of birth: (for individuals)/ Business code (for companies)……….

ID card number/CCCD card: (for individuals)……, date of issue:….., place of issue:……..

Permanent residence registration/head office: …………..……………………………..

Contact address: …………..………………………………………….……..

Phone:………………….….Email:……………………………………..

PARTY B. GRANDPARENTS……(For individuals); Or COMPANY………………………….

Date of birth: (for individuals)/ Business code (for companies)…….

ID card number/CCCD card: (individual)……………, date of issue:….., place of issue:……….

Registered permanent residence/head office: …………..……………………………..

Contact address:……………………………………………………….……..

Phone:………………………Email:……………………………..……..

Considering that, on…/…/…..Party A and Party B signed Contract No…. dated…/…./……

(Hereinafter referred to as “Contract”); Now the parties agree to establish an Arbitration Agreement with the following content:

The parties agree: Any dispute arising out of, or related to, the Contract will be resolved by arbitration at BIGBOSS International Commerce (BBIAC) in accordance with the Arbitration Rules of this center.

Or:

The parties agree: Any dispute arising out of or in connection with this contract shall be resolved by arbitration at BIGBOSS International Trade (BBIAC) in accordance with the Arbitration Rules of this Center.

The parties agree that the arbitration proceedings will be conducted in accordance with the Summary Procedures set out in Article 37 of the BBIAC Arbitration Rules.”

In addition, the parties may add:

(a) the number of arbitrators is [one or three].

(b) the place of arbitration is [city and/or country].

(d) the arbitration language is [ ].** Note: *

Only applicable to disputes with foreign elements **

Only applies to disputes with foreign elements or disputes in which at least one party is a foreign-invested enterprise.

PARTY A PARTY B

3. Notes when signing an arbitration contract

Form and organization of arbitration: It is necessary to clearly identify the form of arbitration or the name of the arbitration organization that will resolve the dispute.

For example: The clause only states “All disputes arising from or related to this Contract will be resolved by arbitration” without specifying a specific arbitration organization.

In case the arbitration agreement does not specify a specific arbitration organization, the parties must renegotiate or the arbitration organization will be selected at the request of the Claimant if the parties cannot reach an agreement. (According to Clause 5, Article 43 of the Commercial Arbitration Law 2010)

Avoid choosing arbitration and court at the same time:

The arbitration agreement must be clear that both arbitration and court should not be chosen to resolve the dispute as this could lead to a conflict of jurisdiction.

Clearly demonstrate your will to choose an arbitrator:

The arbitration agreement must clearly express the will of the parties in choosing an arbitrator to resolve the dispute.

4. How to resolve disputes using Bigboss International Commercial Arbitration Center

To resolve disputes by commercial arbitration at BBIAC. Customers can write in the contract one of the following two contents:

4.1. Model arbitration clause

In addition, the parties may add:

(a) the number of arbitrators is [one or three].

(b) the place of arbitration is [city and/or country].

(d) the arbitration language is [ ].** Note: *

Only applicable to disputes with foreign elements **

Only applies to disputes with foreign elements or disputes in which at least one party is a foreign-invested enterprise.

4.2. Model arbitration clause applicable to summary proceedings

“Any dispute arising out of or related to this contract will be resolved by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) according to the Arbitration Rules of this Center. The parties agree that the arbitration proceedings will be conducted in accordance with the Simplified Procedures set out in Article 37 of the Arbitration Rules of BBIAC.”

In addition, the parties may add:

(a) the place of arbitration is [city and/or country].

(b) the law applicable to the contract is [ ].*

Note:

* Only applies to disputes with foreign elements

** Only applies to disputes with foreign elements or disputes where at least one party is a foreign-invested enterprise