Incorporation of an agreement to arbitrate into a contract (or by way of a separate arbitration agreement) provides the basis for the tribunal’s jurisdiction to determine any disputes that are covered by the arbitration agreement. An arbitration clause in a contract is severable from the substantive contract and enforceable in its own right.
It is important to ensure that an arbitration agreement/clause is well drafted in order to ensure an enforceable commercial result and avoid disputes arising in relation to the agreement itself.
ACICA provides model arbitration clauses for use within contracts. There is no charge for the use of these model clauses. These clauses can be adapted to suit the parties’ circumstances and the relevant transaction however this should only be done with appropriate legal advice.