Arbitrageclausule
Arbitration Clause
An arbitration clause is a contractual provision whereby the parties agree to submit their disputes to arbitration for resolution rather than to the courts.
An arbitration clause provides that disputes between the parties to a contract shall be referred to one or more arbitrators for a binding award. This offers the parties an alternative to ordinary judicial proceedings, often with benefits such as speed, confidentiality, and the ability to appoint experts as arbitrators.
In the Netherlands, the validity and effectiveness of arbitration clauses are regulated in the Dutch Code of Civil Procedure (Articles 1020 et seq.). A valid clause requires a written agreement and a dispute capable of being resolved by arbitration. International contracts frequently contain such clauses to adapt the procedure to the nature of the transaction.
In practice, an arbitration clause precludes the parties from bringing each other before the courts and ensures an efficient settlement of disputes, especially in the construction, trade, and IT sectors.
“The supplier invoked the arbitration clause in the contract, as a result of which the dispute was submitted to the Netherlands Arbitration Institute.”
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