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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 Specimen Arbitration Clause in Agency Agreement:
Incorporating a well-crafted arbitration clause in an agency agreement is crucial for efficient dispute resolution. Here's a concise guide for drafting such a clause:
Title and Identification: Clearly title the clause as "Arbitration Clause" and specify its application to the agency agreement. Include the names of the principal and agent, effective date, and details of the agreement.
Agreement to Arbitrate: Clearly state the parties' agreement to resolve any disputes arising out of or in connection with the agency agreement through arbitration.
Arbitral Tribunal: Specify the number of arbitrators and the process for their appointment. If parties are unsure, provide a default mechanism, such as appointment by a designated arbitration institution.
Governing Law: Clearly identify the governing law that will apply to the arbitration proceedings, ensuring consistency with the overall agency agreement.
Arbitration Rules: Reference established arbitration rules (e.g., from institutions like ICC, SIAC) or, if preferred, outline specific procedures for the arbitration.
Common Mistakes to Avoid:
Vague Language: Use clear and unambiguous language to avoid confusion about the intent and scope of the arbitration clause.
Incomplete Details: Ensure the clause includes all relevant details, such as the number of arbitrators, their qualifications, and the governing law, to prevent disputes over interpretation.
Failure to Specify Arbitration Institution: If relying on institutional rules, clearly state the chosen institution to avoid uncertainty in the arbitration process.
Ignoring Jurisdictional Issues: Clearly identify the seat or location of arbitration to avoid jurisdictional challenges and confusion.
Neglecting Signature: Ensure that representatives of both parties sign the agency agreement, confirming their agreement to the included arbitration clause.
This clause is commonly used in agency agreements to streamline dispute resolution. By following these guidelines and avoiding common mistakes, a well-drafted Specimen Arbitration Clause ensures a more efficient and cost-effective resolution of disputes between the principal and the agent.