There is no such thing as a “standard” arbitration clause. Each deal is different and client objectives vary from one transaction to the next. Accordingly, counsel should carefully consider the potential disputes that may arise in a particular transaction and tailor the terms of an arbitration clause to each client’s needs and business objectives. While it is not possible to draft a one-size-fits-all arbitration clause, it is possible to identify key terms to consider and incorporate in most arbitration agreements, including the following:
• Governing law: Defines the potential claims, defenses and relief available. In international transactions, counsel should consider whether the foreign law includes protectionist statutes or limitation of remedies.
