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Arbitration clauses

Clauses

It is recommended that the usual standard clause agreeing to a GMAA arbitral tribunal is included in a contract. It reads as follows:

"All disputes arising out of or in connection with this contract or concerning its validity shall be finally settled by arbitration in accordance with the Arbitration Rules of the German Maritime Arbitration Association."

Likewise legally binding is the short form:

"GMAA-Arbitration"

The detailed clause below leads to the identical GMAA arbitration proceedings, but provides even more clarity, especially for contracting parties who do not have any experience of GMAA arbitration proceedings.

GMAA Arbitration Clause

1. Procedure

1.1

All disputes arising out of or in connection with this Contract or its validity shall be finally settled by arbitration in accordance with the Arbitration Rules of the German Maritime Arbitration Association (GMAA) current at the time when the arbitration proceedings are commenced.

1.2

The arbitration tribunal shall consist of two arbitrators unless the parties agree that it shall consist of three arbitrators or a sole arbitrator. If the two arbitrators cannot agree on a decision in the proceedings they shall appoint a third arbitrator.

1.3

If a party fails to appoint an arbitrator within two weeks after being requested to do so in writing (e.g. by letter, fax or e-mail) by the other party, the Chairman or Vice Chairman of the Board of GMAA shall appoint the arbitrator at the request of the other party. The foregoing shall apply correspondingly in respect of the appointment of a substitute arbitrator.

1.4

Unless the parties have agreed upon the place of arbitration, the arbitral tribunal shall fix either Hamburg or Bremen as place of arbitration.

2. Law

2.1

In the absence of an express choice of law the parties are deemed to have elected German law as the proper law governing the underlying Contract.

2.2

The arbitration tribunal shall take into account accepted customs of the trade.

2.3

The arbitration tribunal is only authorized to decide on the basis of equitable principles ("ex aequo et bono") if expressly and jointly so authorized by the parties."