Azmi & Associates -Selecting an Arbitration Seat: The Art of Being Specific

When parties opt for arbitration, the arbitration clause or agreement reflects their mutual consent to resolve disputes through arbitration. However, it is often overlooked that incorrectly drafting the arbitration clause can have significant implications, whether domestic or international.

Among the crucial factors to consider in drafting arbitration clauses are: what is the choice of law to govern the dispute? What is the country, state, or city of jurisdiction? Where is the seat of arbitration? What is the law of arbitration or lex arbitri to govern the arbitration proceeding? These are important questions that come with important consequences. In this article, we will focus on one key element in drafting an arbitration clause: the selection of the seat of arbitration.

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Contact the authors for more information - Abu Daud Abd Rahim and Nik Amalia Suraya.