Arbitration Clause Generator
Assemble a commodity trade arbitration clause from the institutions' own recommended model wording, with the seat, governing law, tribunal size and language you choose.
ESCALATION. In the event of any dispute arising out of or in connection with this contract, the parties shall first attempt in good faith to resolve the dispute by negotiation between senior representatives within fifteen (15) business days of written notice of the dispute. If the dispute is not resolved within that period, either party may refer it to arbitration under the clause below. Nothing in this clause prevents either party from seeking urgent interim or conservatory relief from a competent court or from an emergency arbitrator. ARBITRATION. Any dispute arising out of or under this contract shall be settled by arbitration in accordance with the GAFTA Arbitration Rules, No. 125, in force at the date of this contract, such Rules forming part of this contract and of which both parties hereto shall be deemed to be cognisant. Neither party hereto, nor any persons claiming under either of them, shall bring any action or other legal proceedings against the other in respect of any such dispute until such dispute shall first have been heard and determined by the arbitrator(s) or a board of appeal, as the case may be, in accordance with the GAFTA Arbitration Rules. The seat of the arbitration shall be London, England. This contract shall be governed by and construed in accordance with the laws of England and Wales. The language of the arbitration shall be English. CONFIDENTIALITY. The parties undertake to keep confidential all awards, all materials created for the purpose of the arbitration and all documents produced by the other party in the proceedings and not otherwise in the public domain, save and to the extent that disclosure may be required of a party by legal duty, to protect or pursue a legal right, or to enforce or challenge an award before a competent court or other judicial authority. SANCTIONS AND TRADE CONTROLS. Notwithstanding anything to the contrary in this contract, neither party shall be obliged to perform any obligation, and no party shall be liable for any failure to perform, where performance would expose that party or its affiliates, directors, officers or employees to any sanction, prohibition, restriction or penalty under the trade or economic sanctions, laws or regulations of the United Nations, the European Union, the United Kingdom or the United States of America. Each party represents that it is not, and is not owned or controlled by, a person designated on any applicable restricted-party list, and shall notify the other party immediately upon becoming aware of any change to this position.
GAFTA arbitration is a condition precedent to litigation. Time bars are short | typically 1 year for quality claims and shorter for others. Check the specific GAFTA form.
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Overview & methodology
What should an arbitration clause specify?
| Item | Reference | Practical check |
|---|---|---|
| Rules | ICC Arbitration Rules 2021 or agreed UNCITRAL rules | Identify the rules expressly. |
| Seat | Legal home of the arbitration | Determines procedural law and supervisory courts. |
| Governing law | Law applicable to the contract | Specify separately from the seat. |
| Tribunal | Appointment method and number of arbitrators | Use the selected rules and agreed clause. |
| Language | Language of proceedings | Agree before signing the contract. |
| Enforcement | New York Convention 1958 | Recognition remains subject to treaty and local requirements. |
Numerical Example: LMAA vs SIAC Comparison
Choosing the right institution depends on the trade sector. LMAA is the gold standard for maritime charterparty disputes, while SIAC is preferred for general energy supply contracts in Asia.
Choosing an Arbitration Institution
The choice of arbitral institution and seat shapes cost, speed and enforceability years before any dispute arises. GAFTA and FOSFA arbitration is standard in the grain, feed and oilseed trades and is a condition precedent to litigation; LMAA suits charterparty and cargo claims; ICC, SIAC, LCIA and HKIAC suit larger cross-border supply and offtake contracts. This tool assembles a clause from each institution's own recommended wording - always have counsel review before signature.
Method note: calculations run in your browser using the formulas and published rule books cited on this page. Results are free estimates for planning, with no login required, and should be confirmed with your bank, broker or the official source before you commit.
Frequently asked questions
What is an arbitration clause?
An arbitration clause is a contract provision that requires parties to resolve disputes through private arbitration rather than litigation. It typically specifies the arbitral institution (GAFTA, FOSFA, ICC, LMAA, SIAC), seat, governing law, and tribunal size.
Why choose LMAA vs SIAC?
LMAA is the London Maritime Arbitrators Association, best for vessel charterparties and maritime cargo disputes. SIAC (Singapore International Arbitration Centre) is preferred for general commercial and energy supply contracts. Choice depends on the trade sector and preferred enforcement jurisdiction.
What does 'seat' mean in arbitration?
The 'seat' is the legal location of the arbitration (e.g., London, Singapore, Geneva). It determines which national courts have supervisory jurisdiction and which arbitration law applies to the procedure. The seat does not affect where the hearing physically takes place.
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