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Arbitration Clause Drafting

A good arbitration clause is short, clear and enforceable. A poor one can cost months of satellite litigation before the real dispute is even heard. PAD International Group drafts and reviews arbitration clauses for contracts connected with the UK, the UAE and Iran, so that the clause works in the countries where you may need to enforce an award.

What every arbitration clause should settle

ElementWhy it matters
Seat of arbitrationThe seat fixes the law of the arbitration and which courts can support or challenge it. London, Dubai (DIFC or onshore) and other New York Convention seats each have different court supervision.
Arbitral rules and institutionInstitutional rules (for example LCIA, ICC or DIAC) supply appointment, timetable and cost machinery. Ad hoc arbitration under the UNCITRAL Rules is possible but needs more care.
Law governing the arbitration agreementUnder the English Arbitration Act 2025, in force since 1 August 2025, the arbitration agreement is governed by the law of the seat unless the parties expressly agree otherwise. A choice of law for the main contract is not enough on its own.
Number and appointment of arbitratorsOne arbitrator saves cost; three suit larger or more complex disputes. The clause should say who appoints and what happens if a party fails to.
LanguageChoose the language of the proceedings expressly, especially where documents are in Persian or Arabic.
ScopeUse wide wording (“any dispute arising out of or in connection with this contract”) so that related claims are not left to the courts.

Common drafting mistakes

Contracts with an Iranian party

Iran is a party to the New York Convention, and its Law on International Commercial Arbitration (1997) allows international disputes to be arbitrated. Two points need particular care when drafting:

Model approach

We usually start from the model clause of the chosen institution and then adapt it to the deal: the seat, the governing law of the arbitration agreement, the number of arbitrators, the language and any expedited or emergency procedure. Each change is explained in plain English so that your commercial team understands what has been agreed.

How we help

Need a clause drafted or checked before you sign? Ask a question or book a consultation, or return to our arbitration services.

General information only, current as of November 2026. It is not legal advice for a specific matter.