Form of Arbitration Clause in an Agreement (India) by OLL
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Form of Arbitration Clause in an Agreement
1. Every dispute, difference, or question which may at any time arise between the parties hereto or any person claiming under them, touching or arising out of or in respect of this agreement (deed) or the subject matter thereof shall be referred to the arbitration of XY, etc. or if he shall be unable or unwilling to act, to another arbitrator to be agreed upon between the parties or failing agreement to be nominated by…………or, failing agreement to two arbitrators one to be appointed by each party to the difference (whether consisting of one or more than one person) and in case of difference of opinion between them to an umpire appointed by the said two arbitrators before entering on the reference and the decision of the arbitrator ( or such arbitrators, or umpire as the case may be) shall be final and binding on the parties.
OR
2. In the event of any dispute, difference or question arising out of or in respect of this agreement or the commission of any breach of any terms thereof or of compensation payable thereof or in any manner whatsoever in connection with it, the same shall be referred to the Chamber of Commerce……….(or the Association of………..) for arbitration as provided in Rules framed by the said Chamber (or Association) for the purpose. The decision or award so given shall be binding on the parties hereto.
OR
3. All disputes arising between the partners as to the interpretation, operation, or effect of any clause in this deed or any other difference arising between the partners, which cannot be mutually resolved, shall be referred to the arbitration of…………failing him to any other arbitrator chosen by the partners in writing. The decision of such an arbitrator shall be binding on the partners.
This template provides standardized wording for arbitration clauses to be included in legal agreements. It offers three different options: a personal arbitrator appointment, reference to a Chamber of Commerce or Association, and a specific clause for partnership disputes.
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About this template
What is this template?
This document is a collection of alternative model clauses rather than a standalone agreement. It contains specific procedures for appointing an umpire and referencing external Chamber of Commerce rules, and it is NOT a full arbitration agreement or a submission agreement for an existing dispute.
When should you use it?
Use this when inserting a dispute resolution mechanism into a main commercial contract or partnership deed in India. Use a Submission Agreement instead if the dispute has already occurred and no prior arbitration clause exists.
What's inside
| Clause | Name | What it does |
|---|---|---|
| Clause 1 | Individual Arbitrator Appointment | Directs disputes to a named individual 'XY' or a nominee and requires the appointment of an umpire if two arbitrators disagree. |
| Clause 2 | Institutional Arbitration | Refers disputes and breach compensation claims to a specific Chamber of Commerce or Association to be governed by their internal arbitration rules. |
| Clause 3 | Partnership Dispute Resolution | Mandates that partners refer interpretation or operation disputes to a mutually chosen arbitrator if they cannot resolve the difference between themselves. |
Who it's for
- parties in India drafting a commercial contract who require a clause to bypass litigation through private arbitration
- partners drafting a partnership deed who need a mechanism to resolve internal disputes regarding the deed's operation
- businesses intending to use the arbitration rules of a specific Chamber of Commerce for dispute resolution
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