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Can we have an arbitration clause which provides that both the parties can choose different places under the contract ?

Ambia, IN |

For instance A in case of a claim can choose Singapore whereas B can choose Mumbai (India).

Attorney Answers 3


Having two places to arbitrate is usually the result of who files the arbitration procedure. If A files, then it must be arbitrated in B's location. If B files, it must be arbitrated in A's location. It is often used as a deterrent to avoid the hasty triggering of the arbitration clause. Dispute resolution clauses should be carefully drafted to address the specific facts of your contract and the cost/benefit of other types such as negotiation, mediation and litigation so I recommend an attorney review the contract.

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I strongly agree with Mr Guay. The choice of location for an arbitration can be a strategic decision that can significantly affect the one party's chances of a favorable outcome. If you are in negotiations, and one side wants the option to choose its own forum if it brings a claim, the other side should certainly get a similar right, or some other concession in the contract that is of more value.

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You can agree to just about anything. The key word is AGREE.

If you are A, then you don't want to have to travel to Mumbai to deal with a lawsuit (not that you EVER want to have to deal with a lawsuit). So you want to designate Singapore as the only place where a lawsuit can be initiated. This makes the most sense if the majority of the duties and responsibilities under the contract are performed in (completed in) Singapore (keep in mind that enforcing the payment for services or product is just one "performance" under the agreement).

However, if B won't sign unless she/he/it can bring the legal suit in Mumbai, then you have a choice to make.

If you are in agreement with all other terms of the agreement, and if you want to do business with B, then you simply have to decide if you are willing to submit to a Mumbai court and its laws in the case that B feels that you screwed up and breached the agreement. Good luck!

veRONIca jarnagin, atty, pc

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