This clause names which organization will run your arbitration if a dispute happens—common examples are the American Arbitration Association (AAA) or the International Chamber of Commerce (ICC). Each institution has different rules, costs, and procedures; some are expensive and formal, others are cheaper and faster. This clause matters because the institution you choose will control how your case is decided, how much it costs, and how long it takes. For instance, ICC arbitration typically costs £10,000–£50,000+ in fees alone, while some smaller institutions might cost a fraction of that.
Research the institution's typical costs and timelines before agreeing—ask the other side why they chose that specific institution and whether you can choose a cheaper or faster alternative. If the institution is unfamiliar to you, request a clause allowing either party to switch institutions by mutual agreement, or at least get a cap on the total fees you'll pay. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause names which organization will run your arbitration if a dispute happens—common examples are the American Arbitration Association (AAA) or the International Chamber of Commerce (ICC).
Why should I care about this clause?
Each institution has different rules, costs, and procedures; some are expensive and formal, others are cheaper and faster.
What are my options?
This clause matters because the institution you choose will control how your case is decided, how much it costs, and how long it takes.
How does this affect small businesses?
For instance, ICC arbitration typically costs £10,000–£50,000+ in fees alone, while some smaller institutions might cost a fraction of that.