Separate governing law from dispute forum
Governing law addresses substantive issues, while court jurisdiction or the arbitral seat shapes procedure. They can differ, but should be chosen deliberately and tested against mandatory rules.
Arbitration needs complete parameters
Institution, rules, seat, language and arbitrator number should not be ambiguous. Start with the chosen institution's current model clause, then have counsel adapt it to the deal.
- Use the exact institution name and rules
- State the legal seat, not only hearing venue
- Match one or three arbitrators to value and complexity
- Address consolidation, multiple contracts and parties
Design from the enforcement location backwards
Before signing, identify counterparty assets, guarantors and likely enforcement countries, then assess recognition and enforcement of judgments or awards.
Make notices and escalation workable
Define valid email, address, deemed receipt and update duties. Negotiation or executive escalation can have short, clear periods so it does not indefinitely block formal proceedings.
Action checklist
- 01State governing law
- 02Choose court or arbitration without conflicting routes
- 03For arbitration, state institution, rules, seat and language
- 04Set arbitrator number, appointment and emergency relief
- 05Design notice, negotiation and commencement periods
- 06Test enforcement against asset and guarantor locations
Common mistakes
- Combining exclusive courts and arbitration inconsistently
- Naming arbitration but omitting institution or seat
- Copying a model clause without checking multiple contracts or enforcement