Arbitration agreement Definition

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What does Arbitration agreement mean?

An arbitration agreement is a bilateral contract between the parties to the main contract, appointing an arbitrator who becomes a third party to the arbitration agreement.

The arbitration agreement is a bilateral contract, which becomes a trilateral agreement with the appointment of the arbitrator, (Sir Nicholas Browne Wilkinson V-C [1991] 3 All ER 211 at 228, [1992] QB 863 at 885, citing Cie Europeene de Cereales SA v Tradax Export SA [1986] 2 Lloyd's Rep 301). Under that trilateral contract, the arbitrator undertakes his quasi-judicial functions in consideration of the parties agreeing to pay him remuneration. By accepting appointment, the arbitrator assumes the status of a quasi-judicial adjudicator, together with all the duties and disabilities inherent in that status.

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An arbitration agreement is a bilateral contract between the parties to the main contract, appointing an arbitrator who becomes a third party to the arbitration agreement.

The arbitration agreement is a bilateral contract, which becomes a trilateral agreement with the appointment of the arbitrator, (Sir Nicholas Browne Wilkinson V-C [1991] 3 All ER 211 at 228,

View the related checklists about Arbitration agreement

Arbitration and the Contracts (Rights of Third Parties) Act 1999—checklist

Arbitration and the Contracts (Rights of Third Parties) Act 1999—checklist This Checklist should be read in conjunction with Practice Note: Arbitration and the Contracts (Rights of Third Parties) Act 1999. It lists points to think about when considering whether arbitration agreements in contracts also bind the third party under the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999): • does the contract in question exclude C(RTP)A? Many contracts exclude C(RTP)A 1999 • is the contract governed by English law? If it is not governed by English law, then C(RTP)A 1999 may not apply to the contract • if the contract is not governed by English law, there is authority that the C(RTP)A 1999 could still apply (see AES Ust-Kamenogorsk Hydropower Plant LLP v Ust-Kamenogorsk Hydropower Plant JSC) • check the date of the contract. The C(RTP)A 1999 does not apply to contracts entered into before 11 May 2000 (C(RTP)A 1999, s 10(2) and Mulchrone v Swiss Life (UK) plc • does the third party derive an enforceable...

How to start an arbitration—checklist

How to start an arbitration—checklist This Checklist assists when commencing ad hoc arbitration under the provisions of the Arbitration Act 1996 (AA 1996), and institutional arbitration proceedings under the London Court of International Arbitration (LCIA) Arbitration Rules and the International Chamber of Commerce (ICC) Arbitration Rules. Key points to consider when commencing arbitral proceedings under the Arbitration Act 1996 • check the arbitration agreement for any pre-arbitration steps and/or conditions, such as participating in a form of ADR (such as negotiation or mediation), and comply with them • check any time-bars in the arbitration agreement/underlying substantive contract or statutory limitation periods and ensure that they are complied with—see Practice Notes: Limitation periods in arbitration (England & Wales) and Foreign Limitation Periods Act 1984 • check the arbitration agreement for the incorporation of any arbitration rules and/or any other provisions relating to the commencement of arbitration—see Practice Note: Commencement date of an arbitration under the AA 1996 and arbitration rules • check the service/notice provisions in the arbitration agreement...

Arbitration agreements—definition, purpose and interpretation

This Practice Note considers the nature and scope of arbitration agreements with a particular focus on arbitration agreements pursuant to the law of England and Wales, although it also discusses the concept from an international perspective and includes some comparative examples from other jurisdictions. For an introduction to arbitration as a method of dispute resolution, see the following Practice Notes:•Arbitration—an introduction to the key features of arbitration•International arbitration—an introduction to the key features of international arbitration•Ad hoc arbitration—an introduction to the key features of ad hoc arbitration•Institutional arbitration—an introduction to the key features of institutional arbitrationTo compare the answers to key questions relating to arbitration agreements in jurisdictions around the world, please see our International Comparator Tool.Note: In this Practice Note, the discussion concerns agreements to submit future disputes to arbitration unless otherwise indicated.What is an arbitration agreement?The arbitration agreement is often referred to as the ‘foundation stone’ of arbitration as it is, generally speaking, a method of dispute resolution based on mutual party consent to arbitrate future or current...

Arbitration agreements—content

This Practice Note considers the content of the arbitration agreement with particular focus on the position under English and Welsh law (England and English are used as shorthand throughout).This Practice Note should, in particular, be read in conjunction with Practice Notes: Arbitration agreements—definition, purpose and interpretation and Arbitration agreements—the in writing requirement. Further Practice Notes on arbitration agreements are also available in the ‘Related documents’ pod.Contractual requirements for arbitration agreementsUnder English law, an ‘arbitration agreement’ must be made in accordance with usual contractual principles (Mustill & Boyd, Commercial Arbitration, Second Edition, 2001 Companion, ��Ӱ��®, page 263; Black Sea Commodities v Lemarc Agromond). Compliance with such principles will be determined by the law applicable to the arbitration agreement (about which see below). In Black Sea Commodities v Lemarc Agromond, the court was clear that the doctrine of separability of the arbitration agreement did not alter that general position. It is not possible for an arbitration agreement to be deemed agreed if there was no consensus ad idem to the contract in...

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Vienna International Arbitral Centre (VIAC) model arbitration clause

The Vienna International Arbitral Centre (VIAC) model arbitration clause is as follows: ‘All disputes or claims arising out of or in connection with this contract, including disputes relating to its validity, breach, termination or

Letter to opponent initiating appointment of sole arbitrator—proposing three candidates

Letter to opponent initiating appointment of sole arbitrator—proposing three candidates [Date] [Respondent's Counsel] [Address] Dear [insert organisation name] [Arbitral Institution] Arbitration [Arbitration No.]: [Claimant] v. [Respondent]—Arbitrator's appointment Pursuant to clause [insert clause] of the [arbitration agreement], we write with regard to the appointment of the sole arbitrator. We propose that, in order to carry out this process swiftly and fairly, the most effective way to proceed would be for the parties to jointly agree on a candidate. In our client's view, the sole arbitrator should be [an English law qualified lawyer with the relevant experience, seniority and repute].

Dive into our 63 Precedents related to Arbitration agreement

Does Part 11 of the CPR apply to Part 7 claims issued in the County Court Money Claims Centre (CCMCC)? If yes, if an Act requires compensation claims to be arbitrated, does Part 11 allow me to apply to have a declaration of the court if such a claim was issued under Part 7?

Does Part 11 of the CPR apply to Part 7 claims issued in the County Court Money Claims Centre (CCMCC)? If yes, if an Act requires compensation claims to be arbitrated, does Part 11 allow me to apply to have a declaration of the court if such a claim was issued under Part 7? CPR 11 CPR 11 concerns how a party may contest jurisdiction, either by arguing that the courts of England and Wales do not have jurisdiction to try a claim or by arguing that they should not exercise such jurisdiction because there is a more appropriate forum for the claim elsewhere (an argument on ‘non conveniens’ grounds). The purpose of having specific procedural rules is to avoid confusion regarding what steps will amount inadvertently to accepting jurisdiction, and to ensure that jurisdictional challenges are raised at an early stage. The procedure set out is that the party seeking to contest jurisdiction must first file an acknowledgment of service in accordance with CPR Part...

If a defendant considers that a claim has been brought after the expiry of a limitation period, what (if any) impact does this have on a defendant’s approach to the acknowledgment of service and disputing the court’s jurisdiction?

If a defendant considers that a claim has been brought after the expiry of a limitation period, what (if any) impact does this have on a defendant’s approach to the acknowledgment of service and disputing the court’s jurisdiction? In this Q&A, it is assumed that the claim was commenced pursuant to CPR 7 and has been served in the jurisdiction. Following service of a claim form and particulars of claim, a defendant is obliged pursuant to CPR 10.3 to file an acknowledgment of service within 14 days. This is usually a fairly basic step—the acknowledgment has only some innocuous boxes on it and requires some fairly anodyne information. For further information, see Practice Note: Acknowledgment of service—principles. However, where a defendant wants to raise a limitation defence, does this constitute a challenge to the court’s jurisdiction? Or is it merely part of a standard pleading and ought to be included in the defence? Acknowledgments of service and disputing jurisdiction The definition of the word ‘jurisdiction’ in the...

See the 35 Q&As about Arbitration agreement

Malaysia (stay of court proceedings in favour of arbitration) Court of Appeal provides guidance on approach to be taken when considering a stay application (Asia Pacific Higher Learning Sdn Bhd v Stamford College (Malacca) Sdn Bhd)

Arbitration analysis: In dismissing an application to stay court proceedings pending a reference to arbitration, the Malaysian Court of Appeal (“Court of Appeal”) clarified the approach that ought to be taken by the courts when considering a stay application under Section 10 of the Malaysian Arbitration Act. When there is plainly an arbitration agreement but an assertion is made that the arbitration agreement was invalidated because it is null and void, inoperative or incapable of being performed, the courts should apply the ‘just and convenient’ approach, ie—in a situation where both the court and the arbitral tribunal have jurisdiction and power to investigate and conclude on the validity of an arbitration agreement, the appropriate forum to do so must be the, on balance, more just and convenient forum, having regard to the facts and circumstances in issue. This contrasts with the situation where the existence of the arbitration agreement itself is in issue. In such circumstances, the courts should adopt the ‘prima facie approach’ which is to consider whether there...

‘Any dispute arising out of or in connection with this contract’—Singapore Court of Appeal clarifies scope of arbitration agreement (COSCO Shipping v PT OKI)

Arbitration analysis: This case involved an appeal against the dismissal of an application for an anti-suit injunction restraining the first respondent from continuing foreign court proceedings which had allegedly been brought in breach of an arbitration agreement. Although the foreign court proceedings involved a tortious claim in respect of damage to a trestle bridge caused by a vessel owned by the appellant, it was held that the claim arose out of or was in connection with certain bills of lading evidencing contracts of carriage entered into between the appellant and the first respondent, and had therefore been brought in breach of the arbitration agreement contained in each bill of lading. The appeal was allowed, and an anti-suit injunction granted. In the course of its decision, the court clarified the ambit and scope of the phrase ‘dispute arising out of or in connection with this contract’, which (either in these exact terms or some variation thereof) is commonly found in dispute resolution agreements. The court also provided useful guidance on when...

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