A Critical Analysis on Arbitration Clauses and International Contracts

Arbitration clauses in international contracts have become increasingly popular in recent years. They offer parties to a contract a flexible and efficient alternative to traditional court litigation, particularly in cross-border transactions. However, the enforceability and effectiveness of these clauses depend on a variety of factors, such as the governing law of the contract, the scope of the clause, and the willingness of parties to comply with the arbitral award. This paper provides a critical analysis of arbitration clauses in international contracts and explores recent landmark cases in this area. The paper begins with an overview of the use and benefits of arbitration clauses in international contracts, including the flexibility, confidentiality, and neutrality of the arbitration process. It then discusses some of the challenges and limitations of arbitration clauses, such as the potential for unequal bargaining power and the potential limitations on the ability to enforce the arbitral award. The paper concludes with some suggestions for further research in this area, such as exploring the tension between mandatory arbitration clauses and public policy goals, the impact of soft law instruments on the development and practice of international arbitration, the interpretation and enforcement of arbitration clauses in investment treaties, and a comparative analysis of the use and effectiveness of arbitration clauses in different jurisdictions