A well-drafted sample arbitration clause in Bangladesh is the foundation of effective commercial dispute resolution. This article provides sample arbitration clauses for different types of commercial contracts in Bangladesh, along with guidance on the key elements that every arbitration clause should include.
Sample BIAC Arbitration Clause for Bangladesh Contracts
“Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration Rules of the Bangladesh International Arbitration Centre (BIAC). The seat of arbitration shall be Dhaka, Bangladesh. The number of arbitrators shall be one [or three]. The language of the arbitration shall be English [or Bengali].”
Sample ICC Arbitration Clause for International Bangladesh Contracts
“All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules. The seat of arbitration shall be [Singapore/London/Dubai]. The language of the arbitration shall be English.”
Sample Multi-Tiered Dispute Resolution Clause for Bangladesh Contracts
“Any dispute arising out of or in connection with this Agreement shall first be referred to the senior management of the parties for resolution. If the dispute is not resolved within 30 days of referral, either party may refer the dispute to mediation under the BIAC Mediation Rules. If the dispute is not resolved within 60 days of the commencement of mediation, either party may refer the dispute to arbitration under the BIAC Arbitration Rules. The seat of arbitration shall be Dhaka, Bangladesh. The number of arbitrators shall be one. The language of the arbitration shall be English.”
Key Elements of an Effective Arbitration Clause in Bangladesh
Every effective arbitration clause in Bangladesh should include: a clear statement of the parties’ intention to arbitrate; the scope of disputes covered; the arbitral institution and rules; the seat of arbitration; the number of arbitrators; and the language of the arbitration. The clause should be drafted in clear, unambiguous language to avoid disputes about the arbitration process itself.
TRW Law Firm: Arbitration Clause Drafting in Bangladesh
TRW Law Firm advises clients on drafting and reviewing arbitration clauses for all types of commercial contracts in Bangladesh. Contact TRW at tahmidurrahman.com or visit meheruba.com.
Frequently Asked Questions
Can I use a standard form arbitration clause in Bangladesh?
Standard form clauses from BIAC or BIArb are generally sufficient for most commercial contracts. However, for complex or high-value contracts, it is advisable to have a lawyer review and customise the clause.
What happens if the arbitration clause is ambiguous in Bangladesh?
An ambiguous arbitration clause can lead to disputes about the arbitration process itself. Courts in Bangladesh will interpret ambiguous clauses in a way that gives effect to the parties’ intention to arbitrate, but it is always better to have a clear, unambiguous clause.
Can I include a mediation step before arbitration in my Bangladesh contract?
Yes. A multi-tiered dispute resolution clause that requires the parties to attempt mediation before proceeding to arbitration is a good practice for contracts where the parties want to preserve their business relationship.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
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Contact TRW Law Firm
If you need expert legal advice on this matter, contact TRW Law Firm — one of Bangladesh’s leading law firms specialising in ADR, arbitration, and commercial litigation. Visit tahmidurrahman.com or lawfirm.com.bd to speak with a specialist today.
