This form is an Arbitration Reference Clause usable to compel arbitration in contracts where licensing, patents, or commercial trade secrets are a factor.
A New York Arbitration Reference Clause, also known as a New York Arbitration Agreement or New York Arbitration Provision, is a legal provision frequently included in contracts to establish a dispute resolution mechanism. It specifies that any disputes or controversies arising out of the contract should be resolved through arbitration, rather than litigation in court. These arbitration reference clauses adhere to the laws and regulations of the state of New York, making them particularly useful for contracts executed within the jurisdiction. They typically incorporate provisions from the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which ensures the enforceability of arbitration agreements in multiple countries. There are various types of New York Arbitration Reference Clauses, including: 1. Standard New York Arbitration Reference Clause: This type of clause outlines the basic framework required for arbitration, such as the appointment of arbitrators, choice of governing law, and arbitration rules to follow. It often includes key details, like the language of arbitration and the venue for arbitration hearings. 2. Multi-Tiered New York Arbitration Reference Clause: This clause provides for a tiered approach to dispute resolution. It usually stipulates that parties must engage in negotiation or mediation before commencing arbitration proceedings. If the initial methods fail, the dispute moves to formal arbitration. This clause encourages parties to attempt alternative dispute resolution methods before resorting to full-scale arbitration. 3. Institutional New York Arbitration Reference Clause: Parties may choose to incorporate an institutional arbitration reference clause into their contracts. This clause involves selecting an arbitration institution, such as the American Arbitration Association (AAA), the International Chamber of Commerce (ICC), or the London Court of International Arbitration (CIA). The chosen institution administers the arbitration process, providing rules, appointing arbitrators, and managing administrative matters. 4. Hybrid New York Arbitration Reference Clause: This type of clause combines arbitration and litigation, allowing parties to choose between the two methods for resolving disputes. It provides flexibility by specifying certain circumstances under which parties may elect arbitration over litigation or vice versa. This clause is particularly useful when parties want to include a fallback provision in case one method becomes impractical or unavailable. In conclusion, a New York Arbitration Reference Clause is a contractual provision that mandates disputes to be resolved through arbitration in accordance with the laws of New York. It ensures that parties have a clear framework for resolving conflicts outside the traditional court system, promoting efficiency, confidentiality, and finality in reaching resolutions.
