Arbitration Agreement Visualized - Lex Animata By Hesham Elrafei


When parties agree to arbitrate their disputes, they give up the right to have those disputes decided by a national court.

Instead, they agree to settle their disagreements privately, outside of the legal system.


An arbitration agreement is an agreement between the disputing parties in a legal relationship, to refer a current or future dispute, to the jurisdiction of an independent tribunal, Which would resolve the problem in a way that is binding on all parties.

The following conditions must be met for an arbitration agreement to be valid and effective:

• the agreement must be in writing;
• related to current and future disputes;
the dispute must arise out of a legal relationship between the parties, whether contractual or not;
• The parties to the agreement must have the legal capacity and consent to sign and enter into contracts.
• the subject matter must be capable of being settled by arbitration.
• and The arbitration agreement must be valid, under the law to which the parties have subjected it.


In their arbitration agreement, the parties give the arbitrators the power to decide the dispute ,

therefore the parties create their own private system of Justice, by choosing the rules that will govern the procedure, the location of the arbitration,
the language of the arbitration, the law governing the arbitration, the composition of the tribunal by selecting the arbitrators because of their expertise, and The institution That will administer and manage the arbitration.


The parties’ arbitration agreement, is usually a clause in the commercial contract, or a later submission agreement to arbitrate a disagreement that has already occurred, However, In practice submission agreements are uncommon, because once a dispute arises, the parties often cannot agree on anything.

For that reason, it is better to agree to arbitrate at the beginning of the relationship, when the parties are still on good terms.

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