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Recommended Model Arbitration Clause


"Any dispute, controversy or claim arising out of or in relation to this contract, including the validity, invalidity, breach or termination thereof, shall be resolved by arbitration in accordance with the Rules of Arbitration of the SGO Swiss Permanent Organisation of Arbitration in force on the date when the Notice of Arbitration is submitted in accordance with these Rules.

The seat of the arbitration shall be ….. [city in Switzerland];

The number of arbitrators shall be… [one or three]."

A requirement for the validity of an arbitration clause is its existence in writing.

Experience has shown that it can be difficult for the parties of a contract to negotiate an arbitration agreement once a dispute has arisen. This is why it is advisable to agree from the outset, i.e. while concluding the contract in question, which arbitral tribunal is to have jurisdiction, i.e. to include an arbitration clause. In addition, the parties should follow this simple procedure:

Step 1   An arbitration clause is added to the contract (see sample above).

Step 2

The contract containing the arbitration clause is be signed by both parties.

Step 3

  A dispute arises: If a mutually acceptable solution cannot be reached without the assistance of experts, the claimant contacts the SGO. After the Notice of Arbitration has been received (by the SGO Secretariat) and after the registration fee has been paid and credited to SGO, an arbitral tribunal is appointed to resolve the dispute.  


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