An arbitration contract is an agreement between two parties to a dispute to begin the arbitration procedure. The dispute which results in an arbitration contract usually has its roots in an alleged breach of contract, where that contract had an arbitration clause included in it.
Most commonly, the arbitration contract will simply restate the terms originally agreed upon by the parties in the arbitration clause. For example, the question of how many arbitrators will be chosen, by whom, and how an expert will be appointed would all have been agreed upon in the clause. The clause can in other words be seen as a general agreement for all disputes which may arise from a contract, whilst an arbitration contract is an agreement regarding a specific dispute.
An arbitration contract may differ from the terms previously agreed upon in an arbitration clause. For example, if the clause states that three arbitrators will be appointed for a dispute, but both parties consider one arbitrator to be sufficient for the matter at hand, the parties will agree in the arbitration contract to only have one arbitrator, which is most likely to be jointly appointed.
If you are in a dispute and are about to enter into an arbitration contract, it is vital to ensure that all the terms you have agreed on in the clause are implemented into the contract. An oversight on one clause could change the dynamics of the tribunal dramatically, and may interfere with the operation of the arbitration procedure.
If you would like to obtain legal advice on an arbitration contract, Caven can put you in touch with a local arbitration solicitor free of charge. So, if you have any questions or would like our help in finding local arbitration solicitors please call us on 0800 1777 167 or complete the web-form above.