International Arbitration and Sales Contract Rider in Business Law

This report delves into the realm of international arbitration, specifically within the context of sales contracts. It meticulously examines the role and implications of a contract rider, emphasizing its significance as an integral part of the sales agreement. The report outlines the procedures and requirements for initiating a dispute with the London Court of International Arbitration (LCIA), including the preparation of necessary documentation and the financial obligations involved. It details the communication processes between parties and the LCIA, highlighting the importance of accurate contact information and the confirmation of payment. The report also explores the application of the arbitration clause, which incorporates the LCIA rules, and discusses the appointment of arbitrators. Furthermore, it addresses the considerations of nationality in disputes involving parties from different countries or corporate entities, and the implications of the Vindobonia Danubia legal position and the use of English language. The report underscores the importance of adhering to established LCIA procedures and the need for parties to be aware of administrative charges. It provides insights into the arbitration process, including the submission of responses, the role of arbitrators, and the conditions that may impact the outcome of the arbitration. The report also references relevant case law, such as BKMI Industrieanlagen GmbH, Siemens AG v. DUTCO Construction Co., to illustrate key concepts and principles.

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SUBJECT: BUSINESS LAW
INTERNATIONAL ARBITRATION
(Name)
(University)

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SALES CONTRACT: Contract Rider
Please read this rider very carefully because it remains part of our sales contract. By signing it
you imply that you have agreed to the terms and conditions contained in the rider. Any breach of
the terms and conditions contained in this rider is equivalent to the breach of the purchase
contract. The sales agreement reached between us will, therefore, be read alongside this rider and
they will be considered to be part and parcel of one another. The purchase has a legal obligation
to pay for goods and/or services supplied to them as per the contents of the sales contract. In case
of any dispute arising between as a result of the agreement or contract reached then,
The asymmetrical arbitration clause will apply
1. A claimant who is planning to lodge a dispute with LCIA has to do their homework well
and prepare all the requirements. This should be in terms of documents acting as
evidence that a party is not living to the agreements reached between the two. The
claimant should also be ready and willing to pay the recommended amounts of money so
that the arbitration process can kick-off. Apart from this, the claimant should also be
ready to provide a legal representative who will stand in for them when it comes to all
communications. There are instances under which a claimant might want some things to
be done to them. If this is the case then a request for such special favors like getting a
copy of all communications sent to their representative and getting back their documents
after the dispute has been concluded should be thought about and acted upon in advance.

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One should also be ready to shoulder the extra responsibilities which come with such
requests and all shall be well (BKMI Industrieanlagen GmbH, Siemens AG v. DUTCO
Construction Co. (Private) Limited, 1989).
2. Once an individual has the right information and all requirements packaged appropriately
then it becomes necessary for them to go ahead and submit their request. The request
should be submitted in the right form, to the right person and at the right time. One has to
make sure that all procedural requirements have been strictly adhered to so that the work
done by LCIA can be satisfactory. If this is not done then there are high chances that
some things might not go on as expected?
3. Once the claimant has complained that there is a dispute, copies of the arbitration
document will be sent to the respondent through the most appropriate means and payment
will be made. A confirmation that all is well done will be the receipt showing that
payments have been paid to the courier company which was to deliver the documents to
the complainant. A receipt to show that payment has also been paid to LCIA to permit the
arbitration process to kick-off should also be seen so that one can rest assured that all has
been done well.
4. The only way through which an individual will be sure that their payment to LCIA has
been received is when they receive an acknowledgment that payment has been received.
The acknowledgment has to mention the mode of payment used as if it was through a

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cheque then it should be brought out clearly. This acknowledgment will come as the
LCIA officials wait for the respondent to confirm their right mode of communication be
it email or postal office. Once their email address has been confirmed then the
communication process can kick off so that the LCIA can be cocksure that the person
receiving and sending communications is the right intended person. If this is not done
then there are high chances that the LCIA might end up communicating with the wrong
person.
5. The respondent will be expected to provide contact details for their legal representatives
including email, mobile phone, postal address, and fax. Unless there is a bit of different
advice, the communication on the dispute will be sent to the legal representative of the
parties without copying the sane to the parties in question. If by any chance a party to a
dispute wants to receive the communications sent to their legal representative then they
have to advise LCIA in advance and do it in the right manner so that all shall be well with
them.
6. The process of placing a request has to be accompanied by the right documents which
will aid in bringing out the dispute. If for instance the dispute is arising from the sale and
purchase the contract or agreement which was reached by the two parties to govern the
sale or transaction has to be submitted. This will provide the LCIA and arbitrators with a
clear picture of what the dispute is all about. It is from these documents that the right
processing of the arbitration will start and take place in the right direction.

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7. LCIA will request the parties and their representatives to submit any information that is
crucial and touches on the financial matters like sanctions and restrictions which have an
impact on the successful processing of the arbitration. This should be done so that the
outcome from the arbitration process is not negatively affected by unfavorable
conditions. It is, therefore, the duty of the parties through their representatives to relay
this information to LCIA. Before this is done then there is a need for the parties and their
representatives to have a full understanding of all conditions and factors that might
reshape the outcome of the arbitration. Once this has been communicated appropriately
then it will be considered appropriately during the arbitration process and the right steps
and measures will be taken. The claimant should, therefore, make sure that this has been
done so that as LCIA proceeds, such aspects whose impacts are adverse on the outcome
of the arbitration process are not looked down upon. Once they are provided then it
becomes possible for the right considerations to be made for the disadvantaged parties.
8. When a claimant files a request form they are attempting to invoke the attribution clause
which states that: a buyer has a right to refer any dispute or disagreement which will arise
in connection to this contract to the LCIA rules. The LCIA rules have been incorporated
into this clause. Apart from a dispute, any matter like the termination and validity of this
contract should also be drawn to LCIA rules for appropriate attribution.

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9. About this, there will only be three arbitrators where every party has a right to appoint
one arbitrator. The arbitrator who will preside over everything will be appointed by the
LCIA and the legal position of the arbitrator shall be Vindobonia Danubia. The
substantive law of Danubia will be in operation and at the same time, English as a
language will be used throughout the arbitration process. There will be no deviation from
the normal way of getting things done and the already established LCIA dispute
resolution process will be followed.
10. The clause also carries a provision that all disputes have to be resolved as per the
prescriptions of LCIA on arbitration which came under operation the same date when the
LCIA rules were made operational. There is no circumstance under which there will be a
deviation from the already established LCIA dispute resolution process. When an
individual goes to LCIA to request for a resolution of a dispute, they should be aware that
there is an already established procedure. This implies that an individual should not start
opposing the approaches taken by LCIA in the resolution of the conflict. If by any chance
this happens then there are high chances that a party to a dispute might feel that they have
lost everything because their way was not followed. This means that a party to a dispute
has to, therefore, be ready to take the already prescribed means of resolving conflicts that
are lodged to LCIA.
11. The Arbitration Clause provides that disputes to which it is applicable are to be resolved
by Arbitration under the LCIA Rules. At the same time, there is a need to be aware that
there will be administration charges which will be applied at the hourly rate from the time
one fills the request for arbitration. After the request form has been filled three arbitrators

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have to be appointed to allow the arbitration process to go on. The first two will be
appointed by the parties which need to be arbitrated while the third arbitrator who will
preside over the entire arbitration process will be appointed by LCIA. Once an arbitrator
has been appointed by a party they should show that they have accepted the appointment
or not. The acceptance, in this case, can be done in written which is addressed to the
appointing party in a given arbitration process. The response which is provided is based
on one's ability and willingness to take part in the arbitration in which case if one
appointee fails to accept then someone else has to be appointed so that the process can
kick-off (BKMI Industrieanlagen GmbH, Siemens AG v. DUTCO Construction Co.
(Private) Limited, 1989).
12. According to article 2 of the LCIA Rules, a respondent has to submit a response within
28 days after they receive the appointment from the registrar of requests or from the date
the payment for the registration process was done. In case, a response is not provided by
the appointee then it will not interfere with the arbitration process but rather if the
response is not provided within the stipulated time then it can result in denial of a chance
for the respondent to propose an arbitrator. This implies that the respondent can no longer
take part in proposing an arbitrator to take part in the arbitration process.
13. Article 6.1 and Article 6.2 provide that if the dispute is between individuals whose
nationality is different then it will not proceed unless the party whose nationality is
different from the nationality of the presiding arbitrator agrees that the process should go
on. The agreement has to be done in writing by the party in question and no other form of

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agreement will be taken. If in case the other party fails to agree in writing then it implies
that the process cannot proceed unless this has been sorted out. If by any chance the
parties to a dispute are corporates or companies whose nationalities are different then the
advice of the complainants is dependent upon when it comes to considerations of the
nationalities of arbitrators to aid in the process. This advice has to come alongside a
proper explanation of the stand taken by the parties about the arbitrators selected and
permitted to spur the arbitration process. Consideration will, therefore, be made on the
proposals provided by the party to a dispute based on the reasons provided for their
advice and stand. The nationalities of the companies or corporates in question might be
drawn from that of the shareholders who control the company. This is the case because
even though the company might be treated as a separate legal entity but if its nationality
is different from the nationalities of key shareholders then there are high chances that
what may happen or the verdict that might be passed will be affecting these shareholders.
This consideration, therefore, ensures that the needs and demands of the shareholders
have been taken care of and all shall be well throughout the arbitration process.
14. While the process is underway, the parties will be advised at different intervals to make
partial payments in the form of deposits to a designated bank account. If by any chance a
party has to pay through another bank account they are highly advised to make a call and
confirm that they can go ahead and use that account. Once this has been confirmed, they
can then go ahead and make deposit payments and all shall be well. The deposits should
also be paid in advance so that the process can go on without interference. This means
that a party has to make sure that their roles are played out appropriately so that all is well

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with them. If this is not done then there are high chances that the entire dispute resolution
process might be delayed or it might go on as it should be. This makes it necessary for
the parties to a conflict to make sure that they have a full understanding of what should
happen and their role towards it so that all things can be done in the right manner ( Steel
and Morris v. United Kingdom, 2005) .
15. It is important to be aware that the parties have to corporate whenever they are called
upon. This should be either the parties or their representatives so that all things can be
done in the right manner and all shall be well with them. There is no need to start
complaining if an individual failed to corporate. When a party fails to play their role as
required they will be interfering with the successful closure of a given arbitration. This
can be avoided because all parties to a conflict will like it when their dispute is resolved
amicably. If this is what an individual or a party is expecting then they have to brace up
for it and act accordingly.
16. There is no doubt that when the arbitration process will be going on, there will be a lot of
information about the dispute and parties to a dispute. High levels of privacy to this
information will be maintained so that no part of this information is released to
unauthorized persons since this can infringe on the privacy of the parties to a dispute. The
information will also be held private by the stipulated privacy terms and conditions so
that the outcomes of the arbitration are not reshaped by leaking of crucial information
about the dispute or any of the parties to the dispute (Taylor vs Dyna, 2017).

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17. After an arbitration process has been concluded the LCIA holds a right to destroy all the
documents which were submitted to it for the sake of the just concluded dispute. If any of
the parties want the documents to be returned to them then they have to request in writing
to the LCIA. For the documents to be returned then the party which requested the return
of the documents in question should, therefore, make sure that they are taking care of the
cost of getting documents delivered to them.
References
Wilson Taylor Asia Pacific Pte Limited v. Dyna-Jet Pte Limited, Civil Apeal 71 of 2016 suite
no. 1234 of 2015 Sundaresh Menon CJ, Judith Prakash JA, Steven Chong JA 17 April
2017
Judgments of the European Court of Human Rights: Application No. 68416/01 Steel and Morris
v. United Kingdom, dated 15/02/2005; Application No. 23243/03
BKMI Industrieanlagen GmbH, Siemens AG v. DUTCO Construction Co. (Private) Limited,
Court d' Appel [Court of Appeal] of Paris, Not Indicated, 5 May 1989', in Albert Jan Van
den Berg (ed), Yearbook Commercial Arbitration 1990 - Volume XV, Yearbook
Commercial Arbitration, Volume 15.