Question

CP Oil Inc. of the Unites States of America and AZ Oil of Australia are negotiating an international agreement to work together.

You work for CP Oil Inc. Your job is to ensure that the proper wording to allow for an international Arbitration is put into the contract in case there are any disputes.

1. What terms are you going to include in the contract?
2. Why?

Answer 1

•Arbitration is a process where two parties in a dispute agree one or more persons can make decisions about the dispute with a proof or evidences after hearing the arguments from both.

• In arbitration make the opening statements and prove themselves to the arbitrator.

• It is a quick process.

• After the hearing, the arbitrator issues an award. It may the decision or a reason.

• As I'm working for C.P Oil USA, I would like to put forward the following terms along with their reasons:-
1. The arbritration process must be binding.When arbitration is binding, the decision is final, can be enforced by a court, and can only be appealed on very narrow grounds. This is to ensure a proper justice by the arbitrator.

2.There must be clear agreement both the parties with consent of
each other regarding terms in agreement.
3.There must be proper written evidence of agreement with both parties.
4.Any dispute arises,if ICC arbitration chosen as a resolution method it should be decided by both parties or any other method for redressal is also confirmed to each other.
4 When adopting or applying any clause ambiguity in language should be avoided.Matter should be disclosed in clear and meaningful words