Dispute Resolution or Arbitration

This section of the contract establishes the procedure for resolving disputes that may arise between the parties and cannot be resolved through negotiations. Most contracts provide for the settlement of the dispute by arbitration or so-called arbitration. Under arbitration
A (arbitral) court is a court elected by the parties to resolve a dispute between them. Unlike a general (state) court, recourse to the arbitration court occurs on the basis of an agreement of the parties.

An arbitration clause is an arbitration agreement (compromise) for a dispute that has arisen or an arbitration agreement regarding disputes that may arise in the future. An arbitration clause should include: a definition of the range of disputes to be considered by international commercial arbitration bodies, an indication of the competent body of international commercial arbitration to resolve the dispute, the procedure for resolving the dispute. Arbitration usually consists of two arbitrators and one super arbiter. The parties may provide in the contract for the consideration of possible disputes in arbitration at the International Chamber of Commerce (ICC) or any other arbitration.

Under the ICC rules, two arbitrators of the same nationality as the disputing parties and one super arbitrator of the other nationality are elected to resolve a dispute between two counterparties, or one arbitrator of the third nationality is elected. The period for applying to arbitration is determined by the number of working days after establishing the fact of disagreement of the parties or their representatives or the number of months after the expiration of the period for shipment established in the contract. When applying to arbitration, the buyer has no right either to stop the payments it is required to make under the contract or to refuse to accept other consignments of goods that are the subject of the same contract.

The peculiarity of the inclusion of an arbitration clause in the contract is its autonomy, legal independence. This means that the validity of the arbitration agreement does not depend on the validity of the contract in respect of which it is concluded, and the parties cannot avoid referring the dispute to arbitration. Each of the parties is obliged to execute the award made against it within the time limits established by the award or the rules of the arbitral tribunal.