Standard Arbitration Agreements in International Commercial Arbitration

This study is devoted to the analysis of the institute of model arbitration agreements in international commercial arbitration. It is crucial to recognize that the arbitration agreement is an essential part of the contract by which the parties seek to avoid any risks associated with the dispute resolution procedure. However, there is a possibility that the arbitration agreement may be invalid and unenforceable, which precludes the recognition of the arbitral award by a state court. Consequently, the practice of international commercial arbitration has progressed in such a way that the parties use model arbitration agreements specially developed by arbitration centres, which contain the main provisions and exclude the possibility of violation of both institutional rules and national legislation. Nevertheless, the practise of including a model arbitration agreement provided for by the chosen arbitration centre into contracts, which emerged more than 30 years ago, has been overshadowed by the scientific community. The aim of the study is to determine the role of model agreements in the dispute resolution procedure. The analysis provides a comprehensive theoretical and practical understanding of the institution of model arbitration agreements that will facilitate an evaluation of their practical application. An analysis of court practice will answer the question of whether the agreement recommended by the arbitration centre can be characterized as a “basic” one that represents a compromise between the parties in determining the dispute resolution procedure. Accordingly, both positive and negative features of the use of model agreements have been characterized. The study shows that the inclusion in the contract of arbitration clauses drafted by the parties carries greater risks than the use of model arbitration agreements whose scope varies according to the pre-selected arbitration centre.