International Arbitration Agreements and Their Adjustment Clauses: Are They In A State Of Evolution?

Abstract This article examines the principal means of the dispute resolution mechanism which deals with the International Arbitration Agreements. It is focuses, on the drafting of arbitration agreements and their adjustment clauses. This agreements are usually subject of the parties’ drafting skills, negotiations, and interests. Given the situation, almost all international arbitrations arise pursuant to these agreements clauses, which, typically, are concluded well before any dispute arises. However, the international arbitration agreements embrace a very short, a very long, or somewhere in between clauses. Yet, the arbitration agreements in multi-party or in long-term complex businesses transactions are almost always subject to many factors – occurrence or relevance of which was not envisioned at the time the agreement was formed. Is there a perfect clause designed to fit all circumstances and accepted by all parties? What approach serves best the interest of the parties? The article challenges an obscure attitude that parties should negotiate adjustment, hardship or force majeure clauses more often in their original agreements, regardless of the belief that the project is a success and they do not wish to include conditions to avoid unforeseen inconsistencies, conflicts, or similar problems. Moreover, the complex language of these clauses and the long-lasting negotiations makes it even more difficult to convince the parties of the utility and the economic implications of these clauses. Finally, it sets out a suggested approach for determining the most common adjustment agreement clause in any given case.