A bid agreement is less common than an arbitration clause. Since they are prepared after the dispute arises, they are usually much longer than an arbitration clause. A bidding agreement provides details of the dispute and issues between the parties and states that it will be submitted to arbitration. In the course of a dispute, tendering agreements may be concluded to remove the dispute from the jurisdiction of the court, provided that the court of first instance has not yet rendered its judgment and that the pleading period has not yet ended. Too few parties are aware of bid agreements that allow the parties to arbitrate their dispute, even if there is no arbitration clause in the underlying contract. It is important to note that the benefits offered by arbitration institutions during this pandemic are not limited to those who have arbitration clauses in their existing agreements. Even if your contract contemplates litigation, it`s not too late to leverage the comparative strengths of arbitration at this unusual time – using a filing agreement. It is therefore always recommended, even though there may be an arbitration clause, that a template (usually referred to in this context as an “arbitration act” or a “service description”) be signed in each arbitration, whether or not the disputed contract contains an arbitration clause. (3) A tender agreement is an agreement that is concluded when the dispute has already arisen between the parties and no arbitration clause has been concluded beforehand. It then contains the same essential details as an arbitration clause, such as.B. the legal seat and the number of arbitrators. A submission agreement that does not clearly state the details of the dispute submitted to arbitration may subsequently be declared null and void with any award made under the arbitration.
Below are submission agreements that can be signed by the parties to hear their case quickly and effectively through arbitration rather than domestic litigation after a dispute has arisen. A contested agreement cannot contain an arbitration clause. However, if the agreement clearly and expressly refers to another document containing an arbitration clause, the arbitration clause is deemed to have been incorporated by reference into the main agreement, provided that the reference is made unambiguously (e.B. under the heading “Dispute Settlement Procedures and Applicable Law”). If the reference is vague or subject to conflicting interpretations, the national courts may retain jurisdiction. The party should consider how the submission agreement corresponds to or conflicts with the original agreement and ensure that it has achieved the desired relationship between the two agreements. While traditional disputes revolve around the physical location of a courthouse, arbitration institutions have long monitored disputes remotely, favoring conference calls and electronic filing of documents. In recent years, arbitration institutions have shown a willingness to go further, allow remote testimony and, in some cases, hold entire hearings remotely. Therefore, with the onset of the COVID-19 crisis, arbitration institutions were well positioned to quickly focus on remote dispute resolution. It can be assumed that an arbitration clause means that no submission of a bid agreement is required. The purpose of a submission agreement is to define and specify the scope of the arbitration so that the tribunal can – later – ensure that the award was made within the limits set by the parties.
Arguably, an arbitration clause serves this purpose because it limits any arbitration to matters arising out of or related to the agreement, although the limits are broad. If both parties wish their international dispute to be resolved quickly and cost-effectively, they may submit an outstanding dispute to arbitration by means of a submission agreement. However, UAE law is unclear in this regard. Article 203(3) of the Civil Procedure Act of the United Arab Emirates stipulates that the subject matter of the dispute must be defined in an arbitration clause or during the examination of the claim, and Article 216(1)(a) provides that an arbitral award may be set aside in the absence of an “arbitration document”. It is not clear whether this is an arbitration clause or a more comprehensive document such as a bid agreement. Nevertheless, the jurisprudence of the United Arab Emirates has been unanimous in considering that arbitration agreements are special agreements that deprive a party of the right to submit a dispute to the District Court and must therefore be clear. We therefore recommend avoiding such clauses and, if this is not possible, that the document referred to is fully signed on each page so that there can be no dispute, that it is part of the main agreement and that the arbitration clause has been brought to the attention of the parties. Before choosing a court, the party should consider which aspects of the substantive proceedings might be useful to include them in the presentation agreement. Many trade agreements now include an arbitration clause. The clause governs how any future disputes are resolved.
As a rule, these are standard clauses provided by the institution and agreed by the parties to manage the future dispute. Such clauses should contain at least details on (a) the arbitration rules governing the procedure and the institution responsible for administering the procedure, if any; the seat or place of arbitration, the number of arbitrators and the language of the arbitration […].