A poorly-drafted applicable law clause or a poorly-drafted arbitration clause can undermine the smooth progress of an arbitration. They can often be the cause of a dispute by themselves, in addition to the substantive dispute between the parties.

Parties to international transactions should always include a well-drafted applicable law clause and a well-drafted arbitration clause.

The applicable law clause applies to the contract as a whole, but the arbitration clause deals specifically with the arbitration aspect. The two sets of clauses are usually included in different parts of the contract, although often in close proximity to each other.

We encourage you to consider using the model clauses provided below, as they are applicable, in your contracts.