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Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
Guideline for Drafting Appointment of Sole Arbitrator on Default of Other Party:
Usage:
The Appointment of a Sole Arbitrator on Default of the Other Party is used in arbitration agreements when one party fails to appoint or participate in the selection of an arbitrator. This clause empowers the party that has made the appointment to select a sole arbitrator to proceed with arbitration. Here's a concise guideline:
Default Clause Inclusion: Ensure your arbitration agreement contains a default clause stipulating the process for appointing a sole arbitrator when the other party defaults.
Notice and Opportunity: Specify the process for giving notice to the defaulting party about their failure to appoint or participate in the appointment process. Allow them a reasonable period to rectify the default.
Appointment by Aggrieved Party: Clearly state that if the defaulting party does not remedy the situation within the specified timeframe, the aggrieved party may appoint a sole arbitrator.
Impartiality and Qualifications: Ensure the appointed arbitrator is impartial, qualified, and experienced in the subject matter of the dispute.
Informing the Defaulting Party: Notify the defaulting party of the appointment of the sole arbitrator and their rights and responsibilities in the arbitration process.
Common Mistakes to Avoid:
Ambiguity: Make the clause clear and unambiguous to prevent disputes over the appointment process.
Unreasonable Timelines: Provide the defaulting party with a reasonable timeframe to rectify the default.
Failure to Inform: Notify the defaulting party promptly and clearly about the appointment to avoid future disputes.
Arbitrator Bias: Ensure that the appointed sole arbitrator is impartial and unbiased.
Ignoring Legal Advice: Consult with legal experts when drafting the clause to ensure it aligns with applicable laws and arbitration rules.
By including a well-drafted Appointment of Sole Arbitrator on Default clause, parties can efficiently proceed with arbitration even when one party fails to cooperate or participate in the appointment process, promoting a smoother resolution of disputes.