An arbitration agreement is a written contract between two or more parties that establishes the terms and conditions of resolving disputes outside of court. In South Africa, arbitration agreements are commonly used in commercial contracts to resolve disputes in a more efficient and cost-effective manner.
When drafting an arbitration agreement in South Africa, it is important to ensure that it meets the legal requirements of the country and is in compliance with the Arbitration Act of 1965. Below is an example of an arbitration agreement that can be used in South Africa:
Arbitration Agreement
This Arbitration Agreement (“Agreement”) is made and entered into on [DATE] by and between [PARTY A], having its principal place of business at [ADDRESS], and [PARTY B], having its principal place of business at [ADDRESS].
Whereas, the Parties have entered into a contract (“Contract”) for the provision of [DESCRIPTION OF GOODS OR SERVICES] and wish to resolve any disputes arising out of or relating to the Contract without resorting to litigation.
Now, therefore, the Parties hereby agree as follows:
1. Arbitration Proceedings: Any dispute, controversy, or claim arising out of or relating to the Contract or its breach, termination, or invalidity shall be settled through arbitration in accordance with the Arbitration Act of 1965.
2. Arbitration Rules: The arbitration shall be conducted in accordance with the rules of [NAME OF ARBITRATION INSTITUTION], unless otherwise agreed by the Parties.
3. Appointment of Arbitrator: The Parties shall jointly appoint a single arbitrator within [NUMBER] days from the date of the written request for arbitration. If the Parties fail to reach an agreement, the arbitrator shall be appointed by the [NAME OF ARBITRATION INSTITUTION].
4. Place of Arbitration: The place of arbitration shall be [CITY], South Africa, unless otherwise agreed by the Parties.
5. Language: The language of the arbitration shall be [LANGUAGE], unless otherwise agreed by the Parties.
6. Governing Law: The arbitration shall be governed by the laws of South Africa, unless otherwise agreed by the Parties.
7. Confidentiality: The Parties agree to keep the arbitration proceedings and any documents or information relating to the proceedings confidential, except as required by law or for the purposes of enforcing or challenging the award.
8. Award: The arbitrator shall render a written award within [NUMBER] days from the date of the closing of the hearing, which shall be final and binding on the Parties.
9. Cost of Arbitration: The cost of the arbitration, including the arbitrator`s fees, shall be borne equally by the Parties, unless otherwise agreed by the Parties.
10. Enforcement: The Parties agree to comply with and carry out any award rendered by the arbitrator, and any judgment based thereon may be entered in any court having jurisdiction over the Parties.
In Witness Whereof, the Parties have executed this Agreement as of the date first written above.
[PARTY A]
By: __________________________
[NAME], [TITLE]
[PARTY B]
By: __________________________
[NAME], [TITLE]
In conclusion, using an arbitration agreement can be an effective way to resolve disputes in South Africa without resorting to litigation. However, it is important to ensure that the agreement is drafted in compliance with the country`s laws and meets the legal requirements of the Arbitration Act of 1965. The above example can serve as a guide when drafting an arbitration agreement in South Africa.
