1. Disputes, disputes, controversies or claims arising from or related to this agreement are identified and decided by arbitration in [Atlanta, Fulton County, State of Georgia, United States of America]. There are several reasons for this preference for institutional arbitration. An institution can give rewards to a political or moral weight. More practical, to the extent that institutional rules are intended to regulate the end-to-end procedure, institutions are in a better position to resolve any eventualities that may arise, even if (as is sometimes the case) the respondent fails or refuses to cooperate. By incorporating an institution`s rules into the contract, the contracting parties also avoid the time and cost of developing an appropriate ad hoc clause. However, be careful not to define qualifications too narrowly, as there may be an insufficient number of arbitrators capable or willing to accept an appointment. In addition, you should never identify a designated person, as that person may not be able to act or may not want to act if the dispute arises, and the compromise clause would not be applicable. The legal place of arbitration is one of the most important issues to specify. This is called the “seat” of arbitration and it is a legal concept that links arbitration to legal jurisdiction. In general, as a city, the key aspect is the jurisdiction in which the seat is located, since it is the procedural law of that jurisdiction that will govern the arbitration. Obtaining the seat (and therefore the choice of procedural law) is essential, as it can have consequences: arbitration clauses provide that disputes are dealt with by a designated arbitral tribunal and may arise in the national and international context. A compromise clause may or may provide that an institution (such as the International Chamber of Commerce (ICC) or the London Court of International Arbitration (LCIA) manages arbitration according to its own rules or other rules.
This note gives the example of an international arbitration clause that does not provide for an institution to manage arbitration.