Arbitration Clause Generator

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.