The Interpretation Of Arbitration Clauses

Along these lines, a US court(58) has upheld the validity of an arbitration clause referring to the Arbitration Rules of the “American Arbitration Society in Bakersfield, California”. Faced with the objection that the clause had to be considered null and void due to the impossibility of its implementation, the District Court declared its validity, ordering the parties to proceed to the constitution of the arbitral tribunal, which would then determine the rules applicable to the procedure. Similarly, in a case where the parties had agreed to arbitrate at the bar association of a certain city, but the bar association did not offer such a service, the court interpreted the clause as giving jurisdiction to the bar association of the nearest city that had an arbitration chamber(59).…

In some cases, however, the clause indicating a non-existent institution has been…