Arbitration clause

An arbitration clause usually appears in a commercial contract and determines which disputes must be decided by arbitrators, the institution or rules, language, number of arbitrators, and often the seat. In Swiss practice it must clearly show the parties’ intention to arbitrate and should be compatible with the contract’s governing law and any mandatory jurisdiction rules. Poor drafting may create parallel proceedings, uncertainty about the arbitral tribunal’s powers, or enforcement problems. International clauses should also consider the New York Convention framework.