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Digisign arbitration agreement template

welcome to this introduction on how to draft an arbitration agreement in my last video I already told you about the essential requirements of a valid arbitration agreement in this video however I will explain to you what additional features the party should think of when drafting their arbitration clause it carefully drafted the arbitration agreement it's very important for any arbitrary proceedings since the arbitration agreement provides the legal framework for the arbitral procedure so a well drafted arbitration agreement can pave the way for the parties for a successful dispute resolution on the other hand a poorly drafted arbitration agreement may be unenforceable and therefore will probably cost the parties time and money the first choice that the priorities usually have to make is whether they want to after proceedings and intercept an arbitral institution or whether they preferred hoc proceedings meaning proceedings that they will have to administer themselves if parties are inexperienced and international commercial arbitration they should probably opt for institutionalized proceedings an arbitral institution will usually assist with certain aspects such as organizing the hearings are dealing with the communications with the arbitrator's apart from that they offer they often offer certain services such as deciding over the challenge of an arbitrator if the part is up for institutionalized proceedings they should indicate so in the arbitration agreement if the parties on the other hand opt for it hard proceedings they can save the fees and the expenses of the arbitral institution also they can tailor their own set of procedural rules which might not be administered by an arbitral institution yet if part is up for talk proceedings they will have to spell out a lot more specifics in their arbitration agreement this actually brings me to the next aspect the selection of the arbitration rules if part is opted for institutionalized proceedings they should agree on the arbitration rules of the respect of our institution where there have been cases in the past in which arbitral institutions agree to administer arbitral proceedings which were conducted under the rules of another arbitral institution Awards based on such proceedings very very often challenged afterwards pay one of the prizes and what those challenges weren't always successful any challenges inconvenient for the parties because it costs again time and money if the parties opt for it hoc proceedings they can as I said before either tailor a set of procedural rules themselves or what they also can do is they can agree on arbitration rules which are specifically designed for it hoc proceedings such as for example the UNCITRAL arbitration rules this brings me to the third aspect that the parties should take care of when drafting their arbitration agreement the parties need to define the scope of the arbitration agreement and the normal circumstances the scope of the arbitration agreement should be defined broadly meaning that not only disputes arising out of but also all disputes in relation to or in connection with the underlying contract should be governed by the arbitration agreement if not so practice could be invited to question whether a particular dispute is governed by the arbitration agreement the next aspect which should be considered by the parties is that they should choose the seed of the arbitration the seed of the arbitration is very important since the determines the legal jurisdiction which will be tied to the arbitration procedure this concerns various aspects for example the law of the seed of the arbitration will have influence and the law applicable to the arbitral procedure the law of the seed of the arbitration will also determine which state courts under what circumstances will be able to intervene in the we're proceedings and what is more the law of the city of the arbitration will also influence under what circumstances an award can be set aside or refused enforcement in many cases the seat of the arbitration is also the venue of the arbitration meaning the place in which the arbitral proceeding actually take place for example the hearings if the seed of the arbitration shall also be the venue of the arbitration the practice should take practical considerations into account such as availability of hearing facilities are a sufficient infrastructure at the seat of the arbitration yet what is probably more important is that the parties should choose a seat of the arbitration which is neutral to both parties meaning that the country of the city of the arbitration should be unrelated to either of the parties what is also very important is that because of the enforceability of the arbitral award the practice should choose a country which has ratified the New York Convention and what is more because of the influence that the law of the country of the seed of the arbitration will have on the arbitral proceedings and the arbitral award the party should also pay close attention to the legal regime of the seed of the arbitration the next aspect that the party should consider is the number of arbitrators and the appointment method of the arbitrator's and most of the cases parties agree on either a civil arbitrator or a panel of three arbitrators in case of a sole arbitrator this usually means that the parties will agree on one arbitrator together in cases of three arbitrators however the appointment method usually is that each prior to you will appoint one arbitrator which upon confirmation within a point together with the other arbitrator the presiding arbitrator if the parties fail to reach an agreement usually a third party will have to make the choice for them this will be normally either an arbitral institution institutionalize proceedings are another appointing authority if the priorities haven't agreed on such an appointing Authority this could be some state courts for example the next aspects that the parties need to consider is the language of the arbitration when determining the language of the arbitration they should bear in mind that the selection of a language will always have influence on the pool of available arbitrators if the parties don't agree on any language of the arbitration the choice would usually be made by the average Welsh regiment last but not least the parties should also determine the law which shall be applicable to the substance of the dispute this will be usually either in national law R and a national roots of law for example the likes mechatopia what this means I will explain to you in a different video what the parties could also agree upon however is that the average will Tribunal shall decide the dispute on the basis of what is fair and reasonable so the aspect that I just told you about that the party should bear in mind when drafting the arbitration agreement the most important issues that they should take care of yet there are further optional elements this could be for example confidentiality issues it could be the allocation of costs and fees and could also be whether they want to have an expanded judicial review for example so let me briefly summarize what aspects the party should address when drafting their arbitration agreement the parties should decide whether they want to have institutionalized proceedings are at heart proceedings the parties should determine the applicable set of arbitration rules or they should draft their own set of procedural rules the party should determine the scope of the arbitration agreement the practice should furthermore determine the seed of the arbitration apart from that the parties should address the norm of arbitrators as well as an appoint method furthermore the language of the arbitration proceeding should be addressed and last but not least the party should also determine the law applicable to the substance of the dispute so for this video that's it see you