Settling for Commercial Disputes by Arbitration must be made in writing, in which has to specify the form or arbitration or an arbitration institution. When the arbitration clause is not clear, the plaintiff may resolve as follows:
- Where the parties agree to simultaneously resolve a dispute by using Court and Arbitration, however, the parties do not have a re-agreement or a new agreement on the agency competent to settle the dispute, the petitioner has the right actively choose to initiate a lawsuit at either agency, Court or Arbitration, to settle the dispute. Previously, if one of the parties sued the petition at the Arbitration before applying for the Court, in this, the petition must be rejected or suspended from handling by the Court.
In practice, the petitioner or the parties of the dispute often choose to settle Commercial Disputes by Arbitration because of its advantages as the procedure for resolving, such as: the Arbitration process is easier, faster than the Court process; dispute settlement by Arbitration shall be conducted in private, so the confidential information shall not in public. Besides, the arbitral tribunal may accept the request for the opponent to pay attorneys' fees arising from the case if it’s proved that the opponent had a fault. Whereas, one party or the parties must pay fees for Arbitration higher than Court.
- Where the parties only agree to resolve the dispute by arbitration but do not specify the specific form of arbitration or an arbitration institution, the parties need to make a new agreement for the Arbitration clause which is made clear. Accordingly, the petitioner, for active, may submit proposals to select the specific form and arbitration center for consideration to the party left. In case where no agreement is reached, the petitioner has the right to select the form of arbitration or an organization institution to resolve the dispute.
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Currently, although Commercial Disputes are resolved by Arbitration is quite popular, the parties' agreement on the arbitration clause is ambiguous as above a lot. Therefore, it is necessary to know how to initiate a lawsuit at a competent Court or Arbitration when the arbitration clause is not as clear as above.
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