Companies are making deals on a daily basis. The final terms of the deal are put into a contract reflecting the business project that you and your business partner wish to turn into reality.
When drafting your contract, keep in mind that sometimes business projects turn out different as predicted. In any event, you must be prepared for any possible dispute that might arise out of or relating to your contract. A good way of doing this is with a well-crafted dispute resolution clause. In international and domestic business, this usually means to insert an arbitration clause at the end of the contract.
Arbitration is the preferred method of dispute resolution of commercial disputes, especially international ones.
The reason lies in the fact that arbitration has many advantages over court litigation. Among other advantages are its speed, flexibility, confidentiality, the possibility of selecting arbitrators with the expertise, experience and other qualifications needed to resolve the specific dispute, and the finality and enforceability of the arbitral award in most countries of the world.
To choose arbitration, parties need to have an arbitration agreement—in practice, usually an arbitration clause at the end of a written contract.
The Arbitration Institute of the Finland Chamber of Commerce (FAI) recommends the use of its model arbitration clauses published on its website. They are currently available in English, Finnish, Swedish, Russian, German and Spanish.
FAI model arbitration clauses assist parties wishing to refer their disputes to arbitration under the FAI Rules or Expedited Rules. They can be easily copied and pasted into contracts.
Arbitration under the FAI Rules and Expedited Rules means that parties will be able to design the arbitration proceedings within a framework of cost-efficiency and expediency. Further, the process of appointment of arbitrators aims to ensure the highest possible quality in the choice of experts to decide the disputes.
FAI Rules and Expedited Rules entered into force in June 2013. They are modern state-of-the-art rules which meet the highest international standards.
FAI arbitration praised at Helsinki International Arbitration Day 2014
Recently, FAI arbitration was highly praised at “Helsinki International Arbitration Day 2014” for its efficiency, and FAI Rules for being an excellent toolbox for arbitration users. The event aimed at raising Finland’s profile in the field of arbitration was hosted by the Finland Chamber of Commerce on 5 June 2014. It gathered top arbitration experts and more than 200 participants from different countries of the world.