For most international contracts, model arbitration clauses drafted by arbitral institutions are sufficient to ensure a smoothly-functioning and flexible arbitral proceeding in the event of a dispute arising. Model arbitration clauses have been used in thousands of arbitrations and are battle-tested, providing wording that is highly unlikely to create jurisdictional issues. In order to remove a commercial dispute from a domestic court system and to subject it to arbitration in the event of a dispute arising, all that is generally required is to copy and paste a model arbitration clause into an international contract.
In the past, it was necessary to insert fast-track arbitration rules into contracts in order to ensure streamlined arbitration proceedings for smaller disputes. The situation has changed over the past decade, however, as many major arbitral institutions, such as the ICC, SCC, SIAC, HKIAC and ICDR, have integrated opt-out expedited arbitration proceedings into their arbitration rules, automatically providing for streamlined arbitration proceedings for smaller disputes. For instance, the ICC Expedited Procedure Provisions automatically apply to disputes where (1) the arbitration agreement was agreed after 1 March 2017, (2) the amount in dispute is USD 2,000,000 or less and (3) the parties have not opted out of the ICC Expedited Procedure Rules.
Below, you will find model clauses for the world’s major international arbitration institutions, current as of March 2019.
American Arbitration Association (AAA) / International Centre for Dispute Resolution (ICDR)
The ICDR is the subdivision of the AAA that administers international disputes. For ICDR arbitration, the model clause reads:
“Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be determined by arbitration administered by the International Centre for Dispute Resolution in accordance with its International Arbitration Rules.”
Arbitration Institute of the Stockholm Chamber of Commerce (SCC)
“Any dispute, controversy or claim arising out of or in connection with this contract, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce.”
Australian Centre for International Commercial Arbitration (ACICA)
“Any dispute, controversy or claim arising out of, relating to or in connection with this contract, including any question regarding its existence, validity or termination, shall be resolved by arbitration in accordance with the ACICA Arbitration Rules.”
Beijing Arbitration Commission (BAC)
“All disputes arising from or in connection with this contract shall be submitted to Beijing Arbitration Commission / Beijing International Arbitration Center for arbitration in accordance with its rules of arbitration. The arbitral award is final and binding upon both parties.”
Cairo Regional Centre for International Commercial Arbitration (CRCICA)
Model Arbitration Clause:
“Any dispute, controversy or claim arising out of or relating to this contract, its interpretation, execution, the termination or invalidity thereof, shall be settled by arbitration in accordance with the Rules of Arbitration of the Cairo Regional Centre for International Commercial Arbitration.”
Chamber of National and International Arbitration Milan – “CAMERA ARBITRALE MILANO” (CAM)
“All disputes – included those of not contractual nature – arising out of, related or connected to this agreement shall be settled by arbitration under the Rules of the Milan Chamber of Arbitration (the Rules), by a sole arbitrator / three arbitrators, appointed in accordance with the Rules, which are deemed to be incorporated by reference into this clause.”
China International Economic and Trade Arbitration Commission (CIETAC)
“Any dispute arising from or in connection with this Contract shall be submitted to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration which shall be conducted in accordance with the CIETAC’s arbitration rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon both parties.”
Court of Arbitration of the Polish Chamber of Commerce – “Sąd Arbitrażowy przy Krajowej Izbie Gospodarczej” (SAKIG)
“Any disputes arising out of or related to this agreement shall be finally settled under the Arbitration Rules of the Court of Arbitration at the Polish Chamber of Commerce in force on the date of commencement of the proceeding by an arbitrator or arbitrators appointed in accordance with the said Rules.”
Court of International Commercial Arbitration Attached to the Chamber of Commerce and Industry of Romania (CICA)
“Any dispute arising out of or in connection with the present contract, including with respect to its conclusion, nullity, interpretation, performance or termination thereof shall be resolved by final arbitration organized by the Court of International Commercial Arbitration of the Chamber of Commerce and Industry of Romania, in accordance with its Arbitration Rules. The award shall be final, binding and enforceable.”
Court Commune de Justice et d’Arbitrage (CCJA/Ohada)
“Tous différends découlant du présent contrat ou en relation avec celui-ci seront tranchés définitivement suivant les dispositions titre IV du Traité relatif à l’harmonisation du droit des affaires en Afrique et le Règlement d’arbitrage de la Cour Commune de Justice et d’Arbitrage de l’OHADA par un ou plusieurs arbitres nommés conformément à ces textes.”
Dubai International Arbitration Centre (DIAC)
“Any dispute arising out of the formation, performance, interpretation, nullification, termination or invalidation of this contract or arising therefrom or related thereto in any manner whatsoever, shall be settled by arbitration in accordance with the provisions set forth under the DIAC Arbitration Rules (“the Rules”), by one or more arbitrators appointed in compliance with the Rules.”
German Institution of Arbitration (DIS)
“(1) All disputes arising out of or in connection with this contract or its validity shall be finally settled in accordance with the Arbitration Rules of the German Arbitration Institute (DIS) without recourse to the ordinary courts of law. (2) The arbitral tribunal shall be comprised of [please enter “a sole arbitrator” or “three members”]. (3) The seat of the arbitration is [please enter city and country]. (4) The language of the arbitration shall be [please enter language of the arbitration]. (5) The rules of law applicable to the merits shall be [please enter law or rules of law].”
Hong Kong International Arbitration Centre (HKIAC)
“Any dispute, controversy, difference or claim arising out of or relating to this contract, including the existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration administered by the Hong Kong International Arbitration Centre (HKIAC) under the HKIAC Administered Arbitration Rules in force when the Notice of Arbitration is submitted. The law of this arbitration clause shall be [law]. The seat of arbitration shall be [City]. The number of arbitrators shall be [one/three]. The arbitration proceedings shall be conducted in [language].”
International Centre for Settlement of Investment Disputes (ICSID)
“The [Government]/[name of constituent subdivision or agency] of name of Contracting State (hereinafter the “Host State”) and name of investor (hereinafter the “Investor”) hereby consent to submit to the International Centre for Settlement of Investment Disputes (hereinafter the “Centre”) any6 dispute arising out of or relating to this agreement for settlement by [conciliation]/[arbitration]/[conciliation followed, if the dispute remains unresolved within time limit of the communication of the report of the Conciliation Commission to the parties, by arbitration] pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (hereinafter the “Convention”).”
London Court of International Arbitration (LCIA)
“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause. The number of arbitrators shall be [one/three]. The seat, or legal place, of arbitration shall be [City and/or Country]. The language to be used in the arbitral proceedings shall be [ ]. The governing law of the contract shall be the substantive law of [ ].”
Singapore International Arbitration Centre (SIAC)
“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration administered by the Singapore International Arbitration Centre (“SIAC”) in accordance with the Arbitration Rules of the Singapore International Arbitration Centre (“SIAC Rules”) for the time being in force, which rules are deemed to be incorporated by reference in this clause.”
Swiss Chambers Arbitration Institution (SCAI)
“Any dispute, controversy or claim arising out of, or in relation to, this contract, including the validity, invalidity, breach, or termination thereof, shall be resolved by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers’ Arbitration Institution in force on the date on which the Notice of Arbitration is submitted in accordance with these Rules. The number of arbitrators shall be … [“one”,” three”, “one or three”]. The seat of the arbitration shall be … [name of city in Switzerland, unless the parties agree on a city in another country]. The arbitral proceedings shall be conducted in … [insert desired language].”
Vienna International Arbitral Centre (VIAC)
“All disputes or claims arising out of or in connection with this contract, including disputes relating to its validity, breach, termination or nullity, shall be finally settled under the Rules of Arbitration (Vienna Rules) of the Vienna International Arbitral Centre (VIAC) of the Austrian Federal Economic Chamber by one or three arbitrators appointed in accordance with the said Rules.”
World Intellectual Property Organisation (WIPO) Arbitration and Mediation Centre
“Any dispute, controversy or claim arising under, out of or relating to this contract and any subsequent amendments of this contract, including, without limitation, its formation, validity, binding effect, interpretation, performance, breach or termination, as well as non-contractual claims, shall be referred to and finally determined by arbitration in accordance with the WIPO Arbitration Rules. The arbitral tribunal shall consist of [a sole arbitrator][three arbitrators]. The place of arbitration shall be [specify place]. The language to be used in the arbitral proceedings shall be [specify language]. The dispute, controversy or claim shall be decided in accordance with the law of [specify jurisdiction].”