Surviving a pathological clause

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The basis of any arbitration procedure is the clause that agrees to it. From this, the court will be structured , certain procedural rules will be adopted and the essential aspects of that specific arbitration will be defined. A good arbitration clause guarantees a smooth process, while a bad one is a sure path to disaster.

The arbitration clause is often referred to as the “ midnight clause ” because the negotiation of contracts tends to focus on business aspects, and at that time the parties consider that both will benefit from it and pay less attention to it. to the possibility of conflict. That is why once the commercial terms have been agreed and the parties are about to pop the champagne, at the stroke of midnight, someone remembers that a form of conflict resolution must be included and with the pressure to conclude the contract , you make use of a clause that you found out there or you call a friend to send one that you have used in some other contract.

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