Scott v avery clause

This is an arbitration clause in a contract meaning that any dispute must go to arbitration first before any litigation commences.

Arbitration clauses must be properly drafted, clear and must be in the form described in Scott v Avery (1856). That is to say it should...... 

'operate to make completion of the mediation a condition precedent to commencement of court proceedings;

 The process established by the clause must be certain;

The administrative processes for selecting a mediator and in determining the mediator’s payment should be included in the clause and, in the event that  the parties do not reach agreement, a mechanism for a third party to make the selection will be necessary; and

The clause should also set out in detail the process of mediation to be followed – or incorporate these rules by reference. These rules will also need to state with particularity the mediation model that will be used.'

 

 

 

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