The five-line arbitration clause checklist

A dispute-resolution clause is the part of the contract nobody negotiates and everybody later argues about. If you are going to agree to arbitration, make the clause do its job.

1. Name the institution and rules

"Arbitration in accordance with the rules of the Nairobi Centre for International Arbitration" is clear. "The parties will arbitrate any dispute" is an invitation to litigate about how.

2. Fix the seat

The seat determines which country's courts supervise the arbitration and which procedural law applies. For most East African commercial contracts, Nairobi is a sensible, arbitration-friendly seat. Do not leave it blank.

3. Specify the number of arbitrators and how they are appointed

One arbitrator is cheaper and faster; three is more robust for high-value disputes. Say which, and point to the institution's default appointment mechanism so a reluctant counterparty cannot stall.

4. State the language

If any party or key document is not in English, specify the language of the proceedings. It avoids a translation fight later.

5. Carve out urgent relief

Confirm that either party may seek interim measures — an injunction, a freezing order — from a court without waiving the arbitration agreement. Many institutional rules now also offer an emergency arbitrator.

Get these five right and the clause will rarely be the thing you argue about.

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