Arbitration is an alternative dispute resolution mechanism for resolving disputes outside the court, where arbitration is imposed by the terms of the contract (arbitration agreement). In the arbitration process, one or more impartial parties (arbitrators) will determine the dispute through a regulated procedure whose final decision (arbitration award) becomes legally binding on both parties and subsequently becomes enforceable in court. Today, arbitration is widespread in many areas of litigation transactions such as trade and construction, when the parties agreed to do so. The contract is a source of legal obligation. Under the principle of contractual freedom, the parties can freely agree on all matters as long as their agreement is not contrary to public policy. By contractual freedom, the parties have the freedom to choose the contractual terms they choose. One of these conditions is the arbitration agreement. This arbitration agreement is allowed to remain valid even if the contract has been terminated; As a result, their content has the same power of application. It is recognized that if work contracts are executed for a fixed period of time, any requirement in this agreement should be procedural in order to draw the parties` attention to their rights. Therefore, in particular under UAE law, the approach of dealing with loss of rights when trial is prescribed must, in my view, interpret arbitration agreements in a restrictive manner, since the parties have freely agreed to the deadline for the initiation of arbitration proceedings. At the time, you must have thought that the law would be prescribed if there was an failure to comply with its rules. However, before concluding, there are other articles within the framework of the Code of Civil Procedure (CTC) which, in my view, would justify a substantial acceptance of the time limits applicable in an arbitration agreement.
Section 877 of the CLC states: “The contractor must complete the work in accordance with the terms of the contract.” This reading will allow the work to be completed in accordance with the provisions of the treaty, without violating these agreed conditions. As such priority of course the terms agreed by the parties. Therefore, the acceptance of all conditions that involve a limitation in the time of the start of the arbitration procedure implies the acceptance of the risks and consequences indicated in the condition in the event of non-compliance. Non-compliance occurs when a party fails to meet its obligations. If z.B. a construction company agrees to make repairs to your company`s facilities and does not do so, it is a non-compliance. If you don`t worry about not complying with your contracts, you should do so. Ghonim AO Khodeir, `The Three Types of Arbitration Agreements – How They Work` (Al Tamimi – Company, 2013) consulted on February 19, 2019. The Victorian Court of Appeal acted differently.
The Tribunal found that the apparent commercial purpose of the termination clause was to ensure that notices were addressed to the parties through their counsel. There was no commercial objective in requiring the formal designation of the party concerned as the recipient if it is otherwise apparent from the communication that it is its intended recipient. The Tribunal therefore found that the notification had been effectively notified. However, the fact that the judge expressed a different opinion and the seemingly absurd result of cases such as Bond are important indications of the importance of strict compliance with termination clauses in contracts.