Is there such a thing as a perfect arbitration clause? Commercial lawyers have been struggling with this question for decades. In reality, a perfect arbitration clause does not exist because every contract involves different needs and circumstances, many of which do not surface until long after the clause has been drafted. Indeed, the difficulty of identifying one "ideal" arbitration clause demonstrates one of the key advantages of arbitration: It is a form of dispute resolution that adapts to different kinds of disputes and surrounding circumstances.
While there may not be one perfect arbitration clause for every situation, this article identifies the key factors to consider and key mistakes to avoid when drafting an arbitration clause for your client.