ARBITRATION MODEL CLAUSES

NZDRC recommends parties to contracts include a model arbitration clause to ensure they can access arbitration as a dispute resolution option of choice without delay should a dispute arise between them.

There are two options available to parties depending on whether they wish any arbitration to proceed on an ad hoc basis under the Arbitration Act 1996 or under the NZDRC Arbitration Rules.

Model Clause for Arbitration under the NZDRC Arbitration Rules

The following arbitration clause should be included in contracts where the parties wish to have any future disputes resolved by arbitration under the New Zealand Dispute Resolution Centre’s Arbitration Rules:

“Any dispute or difference arising out of or in connection with this contract, or the subject matter of this contract, including any question about its existence, validity or termination, shall be referred to and finally resolved by arbitration in accordance with the Arbitration Rules of the New Zealand Dispute Resolution Centre.”

Note: parties to an existing dispute that have not incorporated the NZDRC Model Clause into a prior agreement may agree to refer that dispute to arbitration under the NZDRC Arbitration Rules by signing the Arbitration Agreement in the form found at Appendix 2 to those Rules.

Model Clause for ad hoc Arbitration under the Arbitration Act 1996

The following arbitration clause should be included in contracts where the parties wish to have any future disputes resolved by arbitration under the Arbitration Act 1996:

“Any dispute or difference arising out of or in connection with this contract, or the subject matter of this contract, including any question about its existence, validity or termination, shall be referred to and finally resolved by arbitration in accordance with the Arbitration Act 1996. The arbitral tribunal shall be appointed from the panel of arbitrators maintained by the New Zealand Dispute Resolution Centre and, in the event the parties are unable to agree on the composition of the arbitral tribunal within seven days of written notice of the dispute being given, the arbitral tribunal shall be appointed by the New Zealand Dispute Resolution Centre upon application by any party to this agreement.

 

The number of arbitrators shall be one. [or may choose three]

 

The language to be used in the Arbitration shall be English. [or choose another language]

 

The governing law of the contract shall be the substantive law of New Zealand. [or choose another country]

Note: parties to an existing dispute that have not incorporated this NZDRC Model Clause into a prior agreement may agree to refer that dispute to arbitration under the Arbitration Act by signing one of the Arbitration Agreements available on the Arbitration Guides and Resources page.