Domestic Arbitration Agreement After a Commercial Dispute Has Arisen Between Parties: A Comprehensive Guide
Commercial disputes are no strange phenomenon in our modern-day business world. They may arise from breached contracts, non-performance or deficient performance of services, or a breach of fiduciary duty, amongst others. As the parties involved in such commercial disputes seek speedy resolution, they may opt for an arbitration agreement as opposed to a court-based resolution.
Arbitration agreements are contracts between parties that involve a neutral third-party arbitrator to resolve the dispute. These agreements are often preferred for their confidentiality, cost-effectiveness and overall flexibility. However, it is essential to note that parties to commercial disputes may form arbitration agreements even after the dispute has arisen.
Domestic arbitration agreements are agreements where the parties involved in the dispute are from the same jurisdiction. In this article, we will discuss the key factors to consider when forming domestic arbitration agreements after commercial disputes have arisen between the parties.
1. Choose an Appropriate Arbitration Service Provider
When choosing an arbitration service provider, it is essential to consider the provider`s level of experience in resolving similar commercial disputes. The most appropriate provider should have a history of resolving disputes efficiently and effectively while maintaining impartiality. An arbitrator`s experience in similar commercial disputes could help fasten the resolution process as they are familiar with the subject matter.
2. Agree on the Arbitration Terms
The parties involved must agree on the arbitration terms before entering into the agreement. These terms should include the procedure for selecting an arbitrator, the costs involved, and the timeline for resolving the dispute. The arbitration terms should be clear and specific to avoid any confusion or ambiguity. Additionally, the agreement should indicate the location of the arbitration, which should be a neutral venue.
3. Choose an Appropriate Arbitrator
The arbitrator should be impartial, independent and unbiased. It is advisable to choose an arbitrator who has the necessary experience in the subject matter of the dispute. Additionally, the arbitrator should have no prior relationship with any of the parties involved in the dispute. Choosing the right arbitrator can significantly influence the outcome of the arbitration process.
4. Ensure Confidentiality
One of the key benefits of arbitration is the confidentiality of the process. The parties involved in the dispute should agree to keep all details of the arbitration process confidential, including the award. The agreement should state that parties involved will not disclose any details or outcomes of the arbitration process.
5. Enforceability of the Award
After the arbitration process, the award must be enforceable. It is advisable to ensure that the agreement is drafted within the confines of the law and that the award can be enforced in a court of law if necessary.
In conclusion, domestic arbitration agreements can be an efficient and cost-effective way to resolve commercial disputes. The key to a successful arbitration process is having an experienced and impartial arbitrator, clear and specific arbitration terms, confidentiality, and enforceability of the award. By considering these factors, parties to commercial disputes can form an arbitration agreement that may help them achieve a speedy resolution.