Standard Arbitration Clause
MODEL ARBITRATION CLAUSE
The model arbitration clause recommended by the Arbitration Court for parties referring their disputes to arbitration instead of state courts is as follows:
“In the event of any dispute arising from or in connection with the present contract, so especially with its breach, termination, validity or interpretation, the parties exclude the state court procedure and agree to submit the matter to the exclusive and final decision of the Permanent Arbitration Court attached to the Hungarian Chamber of Commerce and Industry (Commercial Arbitration Court Budapest). The Arbitration Court proceeds in accordance with its own Rules of Proceedings (supplemented without the provisions of the Sub-Rules of Expedited Proceedings). The number of arbitrators shall be … (three/one) and the language to be used in the arbitral proceedings shall be ……. (e.g. Hungarian, German, English). The parties exclude the possibility of the retrial of the proceedings as regulated in Section IX of Act no. LX of 2017 on Arbitration. In order to settle the legal dispute the ……. substantive law shall apply, excluding its private international law rules.”
The model arbitration clause recommended by the Arbitration Court for parties referring their disputes to expedited arbitration (supplemented with the provisions of the Sub-Rules of Expedited Proceedings) instead of state courts is as follows:
“In the event of any dispute arising from or in connection with the present contract, so especially with its breach, termination, validity or interpretation, the parties exclude the state court procedure and agree to submit the matter to the exclusive and final decision of the Permanent Arbitration Court attached to the Hungarian Chamber of Commerce and Industry (Commercial Arbitration Court Budapest). The Arbitration Court proceeds in accordance with its own Rules of Proceedings (supplemented with the provisions of the Sub-Rules of Expedited Proceedings). The number of arbitrators shall be one and the language to be used in the arbitral proceedings shall be ……. (e.g. Hungarian, German, English). The parties exclude the possibility of the retrial of the proceedings as regulated in Section IX of Act no. LX of 2017 on Arbitration. In order to settle the legal dispute the ……. substantive law shall apply, excluding its private international law rules.”
