---
title: "Arbitration Clause Drafting"
url: "https://legal.ge/en/service/international-law-en/arbitration-clause-drafting-en"
field: "International Law"
description: "Form of the arbitration agreement, appointment of arbitrators, procedure and seat under the law. We help draft a sound clause. Legal.ge."
reviewed: "2026-02-15"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Arbitration Clause Drafting

> Source: legal.ge, https://legal.ge/en/service/international-law-en/arbitration-clause-drafting-en

## Why the Arbitration Clause Matters in a Contract

The arbitration clause is the provision of a contract that determines in advance where and how a dispute between the parties will be resolved. A well-drafted clause saves time and costs; a poorly drafted one becomes itself the subject of a dispute and a reason for the case to drift into court. Georgian arbitration law sets clear rules on the concept and form of the arbitration agreement, the limits of court jurisdiction over the merits, the number and appointment of arbitrators, their challenge, and the procedure and seat of the proceedings. This page explains these rules and what to consider when drafting the clause.

## The Concept and Form of the Arbitration Agreement

Under article 8, an arbitration agreement is an agreement by which the parties submit to arbitration all or certain disputes arising or potentially arising out of a contractual or other legal relationship. It may be concluded as a clause within a contract or as a separate agreement, but written form is mandatory. The written form is deemed satisfied where the content of the agreement is recorded in any form, including by electronic message, provided the information is accessible for subsequent use. It is also considered written where it is concluded through the exchange of an arbitral claim and statement of defence — one party asserting, the other not denying its existence — and where a contract refers to a document containing an arbitration clause in a way that makes the clause part of the contract.

Where one of the parties is a natural person or an administrative body, the agreement must be concluded in signed written form, and the liberal rules on form do not apply to it. And where both parties to the arbitration agreement are natural persons, the agreement must be signed by the parties' advocates as well, or notarially certified — this requirement serves the protection of the weaker party, and its breach makes the clause contestable.

## The Boundary Between Court and Arbitration

Under article 9, a court seized of a claim on the merits of a dispute covered by an arbitration agreement must, upon notice that arbitral proceedings have commenced, refuse the claim or terminate the proceedings — unless it finds the agreement void, inoperative or incapable of being performed. A party must notify the court without delay; meanwhile arbitral proceedings may be commenced, continued and concluded with an award — the tribunal does not wait for the court.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/international-law-en/arbitration-clause-drafting-en

### What is an arbitration agreement?

An agreement of the parties to submit all or certain disputes to arbitration, arising out of a contractual or other legal relationship; concluded in written form, as a clause or a separate agreement.

### What happens if a claim is filed in court anyway?

Upon notice of the commencement of arbitral proceedings the court must refuse the claim or terminate the proceedings — unless it finds the agreement void, inoperative or incapable of being performed.

### How are arbitrators appointed absent agreement?

In a tribunal of three, each party appoints one arbitrator and the two appoint the chairperson; if thirty-day windows lapse, the court appoints the arbitrator by a final, non-appealable decision.

### What should a good clause define?

The circle of disputes and the underlying relationship, the number of arbitrators and the appointment procedure, the seat and rules of the proceedings, and the form — with a natural person participating, only signed written form is valid.