An example of a clause in a contract providing for arbitration in a third country
CLAIMS 1
CLAIMS AND COMPLAINTS
FOCUS 1. Read and discuss the lead-in and the Arbitration Clause.
LEAD-IN
| It often happens that one of the parties to the contract considers that the other party has infringed the terms of the contract. In such cases the dissatisfied party, (which is called a claimant), may think it necessary to send the other party a letter of complaint which often contains a claim, i.e. a demand for something to which the sender of the letter, in his opinion, has a right as, for instance, a claim for damages or for a reduction in the price etc. Complaints and claims may arise in connection with inferior quality of the goods, late delivery or non-delivery of the goods, transportation, insurance and storage of the goods and in many other cases. The Sellers, for example, may hold the Buyers responsible for omitting to give transport instructions in time, and the Buyers may make a claim on the Sellers for damage to the goods caused by insufficient packing. To have to complain is annoying, but to complain without good reason will also annoy your correspondent. If you complain make sure you get your facts right. And if you have to answer an unjustified complaint, be polite and restrained. Remember that complaints are not accusations; they are requests to correct mistakes. Therefore, write calmly; use an impersonal tone, clearly presenting all the relevant information. Very often the parties (claimant and respondent) agree upon an amicable settlement of the claim in question. That means that the claim is considered, admitted and satisfied. Then, the other party withdraws or abandons the claim. If, however, an amicable settlement is not arrived at, i.e. the claim is declined, the dispute is settled by a court of law or, which is more often the case, by arbitration. | ||
| Contracts usually stipulate that in case of arbitration each party should appoint an arbitrator, and the two arbitrators have to appoint an umpire whose award is final and binding upon both parties. When the parties refer their dispute to the Arbitration Court at the Chamber of Commerce and Industry of Russia, each party chooses its arbitrator from among the panel of the Court. These two Arbitrators appoint an Umpire. By mutual consent of the parties, the settlement of the case may, in exceptional cases, be entrusted to a sole Arbitrator. Arbitration clauses in some contracts provide for all disputes and differences to be settled by arbitration held in a third country, while some other contracts provide for arbitration in the country of the respondent party. The claimant submits the dispute for arbitration by filing Points of Claim with the Arbitration Court. On filing Points of Claim the claimant shall make payment in advance on account of the fee to cover the expenses of the arbitration proceedings. Upon the request of the claimant, the President of the Arbitration Court may deal with the security for the claim. Contracts concluded in accordance with the Rules of different trade associations provide for arbitration to be held in conformity with these Rules. | ||
AN EXAMPLE OF A CLAUSE IN A CONTRACT PROVIDING FOR ARBITRATION IN A THIRD COUNTRY