PCA Optional Rules for Arbitrating Disputes between Two Parties of Which Only One Is a State Model Arbitration Clauses

Updated at:August 2016
SUMMARY

Future Disputes. Existing Disputes.

 
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MODEL ARBITRATION CLAUSES

FOR USE IN CONNECTION WITH THE PERMANENT COURT OF ARBITRATION OPTIONAL RULES FOR ARBITRATING DISPUTES BETWEEN TWO PARTIES OF WHICH ONLY ONE IS A STATE

Future Disputes

Where a State and a private entity are parties to a contract and wish to have any dispute referred to arbitration under these Rules, they may insert in the contract an arbitration clause in the following form:

1. If any dispute arises between the parties as to the interpretation, application or performance of this contract, including its existence, validity ortermination, either party may submit the dispute to final and binding arbitration in accordance with the Permanent Court of Arbitration Optional Rules for Arbitrating Disputes between Two Parties of Which Only One Is a State, as in effect on the date of this contract.1

Parties may wish to consider adding:

2. The number of arbitrators shall be . . . [insert ‘one’ or ‘three’].2

3. The language(s) to be used in the arbitral proceedings shall be . . . [insert choice of one or more languages].3

4. The appointing authority shall be the Secretary-General of the Permanent Court of Arbitration.

5. The place of arbitration shall be . . . [insert city and country].

6. This agreement to arbitrate constitutes awaiver of any right to sovereign immunity from execution to which a party might otherwise be entitled with respect to the enforcement of any award rendered by an arbitral tribunal constituted pursuant to this agreement.4

Existing Disputes

If the parties have not already entered into an arbitration agreement, or if they mutually agree to change a previous agreement in order to provide for arbitration under these Rules, they may enter into an agreement in the following form:

The parties agree to submit the following dispute to final and binding arbitration in accordance with the Permanent...

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