The arbitration clause in your contract: seven points to check before signing

In many contracts the arbitration clause is treated as boilerplate copied from an earlier deal. But when a dispute arises it is the first thing anyone reads, and if it is unclear it can become a second dispute of its own.

Seven points to review

1. Scope: does it cover all disputes arising out of or in connection with the contract?
2. Rules: does it name an arbitral institution or clear procedural rules?
3. The number of arbitrators and how they are appointed.
4. The seat and language of the arbitration.
5. The law governing the substance of the dispute.
6. Pre-arbitration steps, such as negotiation or mediation, and their time limits.
7. Confidentiality and how costs are allocated.

Common mistakes

Frequent problems include clauses that give jurisdiction to both arbitration and the courts in conflicting terms, references to an arbitral institution by an inaccurate name, and appointment procedures that are left unregulated.

A good arbitration clause goes unnoticed until you need it, and then it has to work without argument.

When to ask for a legal review

For long-term or high-value contracts, or where one party is outside Egypt, the arbitration clause deserves extra time before signing. Our team reviews it in the context of the whole contract, not in isolation.