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Preventing Defective or Pathological Arbitration Clauses

The chosen dispute-resolution mechanism may be as important as the obligations contained in a contract. A defective arbitration clause contains contradictions or omissions about institution, seat, arbitrators or the disputes covered.

What to keep in mind

Check identification of rules, appointments, multiparty arrangements, language, governing law and pre-arbitration stages before signature.

Ambiguity is most costly when the dispute has already arisen and cooperation is scarce.

Distinctions often confused

A valid agreement to arbitrate can still contain procedural defects that make it difficult to operate.

Frequently asked questions

Can an arbitration clause be corrected after a dispute arises?
Possibly by agreement, but achieving consent may be difficult.
What is the best time to review the clause?
Before the contract is signed, ideally with the entire dispute framework in view.

Informational content. It is not a substitute for professional advice.