An Arbitration Clause in Your Contract: What to Ask a Lawyer Before Signing

Do not skip the final clauses because no dispute exists

If a draft mentions arbitration, review it alongside the commercial terms before signing rather than waiting for a default to ask where to go. The clause concerns how a future dispute may be handled. Have a lawyer check its wording and suitability for the parties, instead of copying an old clause merely because it was used before.

Distinguish deciding a dispute from helping negotiations

ETDA describes arbitrators as third parties who decide disputes, and explains that parties may provide for arbitration in a contractual clause. It should not be understood as merely inviting a neutral person to talk without binding consequences. The effect of a particular clause or award must be assessed by a lawyer under the applicable law and conditions.

Ask which disputes fall within its scope

Provide the complete draft and attachments. Ask what matters the wording covers, whether notice or negotiation is required first and how it relates to other provisions. For example, a main contract might specify one method while an attached work order specifies another. Ask the lawyer to explain their relationship before signing instead of reading only the familiar-looking page.

Make institutional, language and location references clear

If the draft names an institution, rules, language or location, ask what each term does and how it affects preparation. Verify names and referenced documents with that institution's own materials; similar names are not interchangeable. Do not assume a meeting venue answers every legal-location question, especially where a contract involves more than one country.

Discuss costs and practical participation

Ask the lawyer to separate items that may need consideration, such as procedural fees, arbitrator fees, adviser costs and necessary translation, identifying rates or conditions still to be checked. The word arbitration does not make every dispute cheaper or faster. Suitability should be considered with the transaction value, documents and the parties' ability to participate.

Obtain a conclusion before accepting the final draft

For a contract-review consultation with B Law Firm, bring all relevant drafts and information about the business arrangement. Request a summary of wording needing clarification and implications to understand before signing. If a dispute already exists, immediately identify documents and receipt dates. A consultation or negotiation appointment does not automatically suspend relevant time limits.

References

• ETDA: Arbitration
• B Law Firm: Contract review and dispute services