Arbitration Agreement Sample Philippines: Understanding its Importance
An arbitration agreement is a legally binding contract between parties involved in a dispute to resolve their differences outside of the court system. In the Philippines, arbitration is governed by the Philippine Alternative Dispute Resolution Act of 2004 (ADR Act), which provides for the use of arbitration as an alternative to litigation.
If you are entering into a business or employment contract that includes an arbitration agreement, it is essential that you understand its terms and implications. To help you with this, we have provided a sample arbitration agreement for you to review.
Sample Arbitration Agreement
This Agreement is entered into on [Date] between [Party A] and [Party B] (collectively referred to as the “parties”).
Purpose of Arbitration
The parties agree to submit any dispute or controversy arising out of or relating to this Agreement or the breach, termination, or validity thereof to be resolved by arbitration in accordance with the Philippine Alternative Dispute Resolution Act of 2004.
Arbitration Process and Procedures
The arbitration shall be conducted in accordance with the rules of the [Name of Arbitration Provider] and the Philippine Alternative Dispute Resolution Act of 2004, and shall be held in [City/Province].
The parties shall choose a single arbitrator to preside over the arbitration proceedings. If the parties fail to agree on an arbitrator, the arbitration provider shall appoint one.
The arbitrator shall have the power to order such discovery as may be necessary, including interrogatories, requests for production of documents, and depositions.
The decision of the arbitrator shall be final and binding upon the parties.
Costs and Fees
The costs and fees of the arbitration, including the arbitrator`s fees, shall be borne equally by the parties.
Confidentiality
The arbitration proceedings and any documents, evidence, or information produced or disclosed during the arbitration shall be confidential and may not be disclosed to any third party except as required by law.
Conclusion
An arbitration agreement can be an effective means of resolving disputes without the need for expensive and time-consuming litigation. However, it is important to understand the terms and implications of the agreement before signing it.
If you need assistance in drafting an arbitration agreement that is tailored to your specific needs, it is recommended to seek legal advice from a qualified lawyer or law firm. With the right legal guidance, you can ensure that your rights and interests are fully protected in the arbitration process.
