Drafting an Arbitration Clause That Actually Works

The seat of arbitration, the governing law of the arbitration agreement, the number and method of appointing arbitrators, the language of the proceedings, and the scope of arbitrable disputes — these five decisions determine whether an award will be recognized and enforced in the Philippines and abroad.

The most common defect I encounter is silence on the seat. Without a seat, the curial law is contested, and enforcement under the New York Convention becomes uncertain.

For domestic commercial contracts, I default to a seat in Manila or Cebu under the PDRC or PIAC rules, with English as the language and a single arbitrator for disputes below a stipulated threshold.