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Arbitration clause

The arbitration clause is a contractual agreement between the parties under which a possible future dispute will be subjected to an arbitration court. The arbitration clause usually is a separate clause included in contract, which bind both parties. Nevertheless, it can be also drawn up as separate agreement, which contains detailed rules of arbitration procedures in possible dispute.

The core of arbitration clause

The main core of arbitration clause is that upon its content both parties jointly submit precisely described future possible dispute between them to functioning or specially appointed arbitration court (court appointed ad hoc). The main characteristics of proceedings in front on arbitration court is much more flexible than in regular proceedings. Moreover, as a rule the parties may choose the judges.

Form

The arbitration clause shall be concluded in writing. In accordance to Polish law, the requirement of written form are fulfilled also when the clause is concluded in letters or statements exchanged between the parties by the means of distance communication which allow to save its content.

Binding force

in the event of filling a lawsuit to common court, such court may proceed with case examination despite the fact that contract upon which the dispute is based contains arbitration clause. However, the defendant may plead the charge that the parties are bounded by arbitration clause before the case enters the substantial examination. If such charge is pressed effectively, then the court shall dismiss the lawsuit and the claimant will have to fill a claim to specific arbitration court.

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Michał Dudkowiak

Lawyer

Michał Dudkowiak

Barrister, Managing Partner

Michał Dudkowiak

Contact:

Rondo ONZ 1
00-124 Warsaw