When choosing a place where the proceedings regarding awards are particularly tedious, one may hope that the parties will be discouraged from lodging recourse against the award. In addition, the execution of an award in the country where it was issued often raises fewer difficulties than the enforcement of an award issued in another country. There is no perfect arbitration clause, i.e., a clause that could be or should be used in all international contracts. It is essential to carefully draft the arbitration clause because most difficulties that very often complicate or delay arbitration proceedings are a direct result of the arbitration clause not being drafted correctly. Parties are also less tempted to provoke a clash when the arbitration clause is well drafted.
Clarity is much more important than eloquence.
Choice of Law Other than the place of arbitration, choice of law on the merits of the dispute is one of the most important elements of an arbitration clause. The choice of law may have important consequences concerning the amount of damages likely to be granted, and a lack of choice concerning applicable law may lead to long and expensive legal proceedings. The drafter must be aware of the consequences of using the standard arbitration clause of some arbitration bodies. For example, reference to the ICC rules means incorporation in the contract of all the rules of this institution. The drafter must also have solid knowledge of the rules of the specific law he intends to choose, including the relevant appendices and the possible explanatory comments.