Arbitrators may hear disputes as a sole arbitrator or on a panel of three arbitrators, known as an arbitral tribunal. Any applicable institutional rules can only amend or override non-mandatory rules. It assumes that it will be used at the main contract drafting stage – that is, before any dispute has arisen – but the issues covered are also relevant to the negotiation of arbitration agreements after a dispute has arisen and to review of arbitration agreements that bind parties who are involved in a dispute.The clause should specify the seat, or place, of the arbitration. An example of a mandatory rule is that in Turkey it is mandatory that anyone signing an arbitration agreement on behalf of someone who is Turkish must have a special power of attorney.Sovereign, or state, immunity is the immunity of a state from being sued in the courts of another state. For example, if the parties are to agree on a sole arbitrator you should consider adding a provision that if they cannot agree within a defined timescale the relevant institution or a third party will appoint the arbitrator.The main institutional rules provide default mechanisms for selecting and replacing arbitrators. This guide covers some of the main points to be taken into account when drafting an arbitration clause at main contract stage, either as clauses within the main contract or in a separate document, and sets out how arbitration will work in a particular case. The result may not be what you would expect.Parties should consider whether they want their arbitration to be administered and supervised by a recognised arbitral institution or whether they want an ad hoc procedure. Under an ad hoc arbitration the parties are able to create their own rules, but this requires a spirit of cooperation. > The arbitration clause should be signed by as many potential parties to a future dispute as possible. In this case the clause may provide that if a dispute arises and more than two of the parties are in dispute, then one arbitrator may be chosen by the party or parties making the claim and one arbitrator by the party or parties on the other side. ""The third arbitrator, who shall act as president of the arbitral tribunal, shall be jointly nominated by [the other two arbitrators/the parties] within [30] days of the [confirmation/appointment] of the second arbitrator. Though the smart contracts through a computer algorithm will automatically perform some or all the parties’ obligations. Multi-tiered arbitration clauses – which provide for mediation, negotiations or some other form of alternative dispute resolution (ADR) prior to initiating arbitration are a frequent part of arbitration clauses drafted nowadays. For example, French public bodies are not normally entitled to arbitrate in domestic arbitrations unless authorised by decree.
This is an important aspect to determine, particularly where the parties do not share a common language. In many cases the procedural rules will give the tribunal ample discretion to determine the manner and timing of the various procedural steps in the arbitration such as, the filing of pleadings, the exchange of documents and witness evidence as well as the scheduling of hearings.In an ad hoc arbitration, it is up to the parties to agree on the procedural rules that will apply.