Binding External Arbitration Clause Samples
The Binding External Arbitration clause establishes that any disputes arising under the agreement will be resolved by an independent, third-party arbitrator whose decision is final and legally enforceable. In practice, this means that instead of going to court, the parties must submit their disagreement to an external arbitration body, which will conduct a hearing and issue a binding resolution. This clause ensures that conflicts are settled efficiently and privately, reducing litigation costs and providing a clear, predetermined process for dispute resolution.
Binding External Arbitration. In lieu of the option in Article 8(a), if within sixty (60) days of the initial notification, after such sixty (60) day period but before eighty (80) days from such initial notification of a dispute, the Seller (only) may elect to refer such dispute under this Agreement to a proceeding for binding arbitration to be conducted at an agreed location, or if the Parties cannot agree on a mutually agreeable location, in Dar es Salaam. Any such arbitration proceeding shall be conducted by a neutral arbitrator selected by the Parties. If the Parties cannot mutually agree on a neutral arbitrator, each Party shall appoint a single arbitrator trained in arbitration and not related to any Parties, to the financial interests of either Party, nor to the dispute, and these two arbitrators shall mutually agree on a third neutral arbitrator. The Seller, in electing to select binding external arbitration under this provision in lieu of the dispute resolution provision under Article 8(a), shall be responsible to reimburse the reasonable travel and per diem expenses of the Buyer to participate in this arbitration, if it is held outside of The United Republic of Tanzania. Once the Seller elects in writing as provided herein, with notice to the other Party and the Authority, to refer any dispute to binding arbitration, the decision of the arbitrator(s) shall be final and binding on the Parties without further resort for any Party to judicial or other remedies, provided however, that if binding arbitration has not reached a final decision within three-hundred sixty (360) days of the mutual referral of the dispute to binding arbitration, and such failure is not due to the lack of cooperation of a given Party, that Party may without penalty or forfeiture of any legal or equitable rights hereunder withdraw from such arbitration and seek other remedies at law or at equity consistent with this Agreement, including within twenty (20) days of such withdrawal either Party may invoke the dispute resolution provisions of Article 8(a).
Binding External Arbitration. In lieu of the option in Article 8.2, if after sixty (60) days of the initial notification but before eighty (80) days of such initial notification, such dispute is not resolved to the mutual satisfaction of the Parties in accordance with Article 8.2, such dispute (including the validity of this Agreement) shall be finally settled by arbitration in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (the “UNCITRAL Rules”) as at present in force. Unless the parties agree differently, the following shall apply: (a) the number of arbitrators comprising the Tribunal shall be three (3); (b) the appointing authority according to article 6 in the UNCITRAL rules shall be [to be appointed by an agreement of the Parties]; (c) the Arbitration shall be conducted and an award shall be rendered in the English language; (d) the seat of arbitration shall be [Dar es Salaam] and (e) the venue for arbitration shall be [Dar es Salaam], unless Dar es Salaam becomes inaccessible due to a Force Majeure Event or any action of the Government of Tanzania makes it impossible to conduct arbitration in Dar es Salaam, in which case the venue for arbitration shall be [Port Louis, Mauritius]. The decision of the Tribunal shall be final and binding upon the Parties and shall not be subject to appeal.