Put us in your contract
Two ways to bring a dispute to Verca: copy the model clause into your contract before a dispute arises, or agree to arbitrate after one arises.
Two ways to bring a dispute to Verca
Before a dispute: put us in your contract
Copy the model clause into your agreement and any future dispute comes here automatically, on a fixed timetable and a fixed fee.
After a dispute: you can still arbitrate
If your agreement is silent on arbitration, or there is no written agreement at all, you and the other side can still agree to arbitrate here. We prepare the agreement to arbitrate and send it to both sides for signature.
VERCA ARBITRATION
Model Arbitration Clause
Model form for incorporation into commercial agreements governed by South African law. The clause is drafted to operate with the Arbitration Act 42 of 1965 and the Verca Rules. Replace the bracketed text with the parties' elections, and include the optional Parts only where required. Where a Part is omitted, renumber the remaining Parts.
A. REFERENCE TO ARBITRATION
1. Any dispute, controversy, claim or difference arising out of, relating to, or in connection with this Agreement, including any question concerning its negotiation, conclusion, existence, validity, interpretation, performance, failure to perform, breach, repudiation, termination, enforceability, rectification, rescission, the consequences of its invalidity, or any outside contract obligation arising out of or connected with it (a Dispute), shall be referred to and finally resolved by arbitration administered by Verca, in accordance with the Verca Rules in force on the date on which the Notice of Arbitration is submitted, which Rules are deemed to be incorporated into this clause by reference.
2. The arbitration shall be conducted on the procedural track applicable under the Verca Rules according to the value, complexity and significance of the Dispute, or on such other track as the parties may jointly elect in accordance with those Rules. The parties accept the classification and reclassification powers of Verca under the Rules.
B. GOVERNING LAW, SEAT AND LANGUAGE
3. This Agreement, and the arbitration agreement contained in this clause, shall be governed by and construed in accordance with the law of the Republic of South Africa.
4. The arbitration shall be governed by the Arbitration Act 42 of 1965.
5. The seat (legal place) of arbitration shall be [city], South Africa.
6. The language of the arbitration shall be English.
C. THE TRIBUNAL
7. Unless otherwise agreed by the parties in writing, the tribunal shall consist of a sole arbitrator appointed in accordance with the Verca Rules.
D. AWARD, FINALITY AND ENFORCEMENT
8. The award shall be final and binding on the parties, subject only to any appeal validly provided for under the Verca Appeal Rules pursuant to an express appeal agreement in Part J. The parties undertake to carry out any award without delay.
9. Any award may, on application to a court of competent jurisdiction, be made an order of that court and enforced accordingly.
E. LIMITED RECOURSE
10. The parties waive, to the fullest extent permitted by applicable law, any right to challenge, appeal, review, set aside or otherwise seek recourse against an award, except:
- (a) on a ground under the Arbitration Act 42 of 1965 that cannot lawfully be excluded, including the setting aside of an award under section 33 of that Act;
- (b) under any other mandatory provision of applicable law that cannot validly be waived; or
- (c) pursuant to a valid appeal conducted under the Verca Appeal Rules, where the parties have expressly agreed to such appeal in Part J.
F. INTERIM, EMERGENCY AND COURT RELIEF
11. Nothing in this clause prevents a party from:
- (a) applying for emergency, expedited, interim, conservatory, protective or similar relief under the Verca Rules, including, before the constitution of the tribunal, under the Verca Interim Interdictory Awards Rules or the Verca Emergency Ad Hoc Arbitration Rules, and, after the constitution of the tribunal, from the tribunal under Article 11 of the applicable Rules;
- (b) seeking interim, conservatory, protective, injunctive or equivalent relief from a competent court where such relief is available under applicable law; or
- (c) applying to a competent court for any relief that applicable law reserves exclusively to a court.
12. A matter that applicable law reserves to the exclusive jurisdiction of a court (a reserved to a court matter) shall not be the subject of emergency or interim relief under the Verca Rules and must be pursued before a competent court.
13. Any application to a court for relief under this Part shall not constitute a waiver of this arbitration agreement, a repudiation of this clause, or an election to abandon arbitration.
G. SEPARABILITY AND SURVIVAL
14. The arbitration agreement contained in this clause shall be autonomous and separable from the remainder of this Agreement. The invalidity, illegality, rescission, avoidance, repudiation, termination, expiry, unenforceability or alleged absence of this Agreement shall not affect the validity, existence or enforceability of this arbitration agreement.
15. This arbitration agreement shall survive the termination, cancellation, rescission, invalidity, expiry, completion or discharge of this Agreement. In accordance with section 3(1) of the Arbitration Act 42 of 1965, it may not be terminated except by the consent of all parties, unless this Agreement provides otherwise.
H. CONFIDENTIALITY
16. All aspects of the arbitration, including pleadings, evidence, submissions, hearings, orders, awards and all information disclosed during the proceedings, shall be confidential, except to the extent that disclosure is required by law or regulatory obligation, ordered by a court of competent jurisdiction, or necessary for the enforcement or challenge of an award or the protection or pursuit of a legal right.
I. DIGITAL CONDUCT, SERVICE AND DATA PROTECTION
17. Notices, communications, filings, service of documents, procedural directions and awards may be transmitted electronically in accordance with the Verca Rules and the Verca Service Protocol, and shall be deemed valid and effective when transmitted in the manner those instruments prescribe.
18. The parties consent to the processing of personal information for the purpose of conducting the arbitration in accordance with the Protection of Personal Information Act 4 of 2013 and the information security provisions of the Verca Rules and the Service Protocol.
OPTIONAL PARTS
Include the following Parts only where the parties so elect. Each is drafted to stand on its own.
J. APPEAL AGREEMENT
Appeal is optional. Under section 28 of the Arbitration Act 42 of 1965 an award is final and not subject to appeal unless the agreement provides otherwise. If this Part is omitted, no appeal lies under the Verca Appeal Rules.
J.1. The parties expressly agree that any final award rendered under the Verca Expedited Commercial Arbitration Rules or the Verca Complex Commercial Arbitration Rules shall be subject to appeal in accordance with the Verca Appeal Rules.
J.2. Any such appeal shall be conducted exclusively under the Verca Appeal Rules and in accordance with the procedures, powers, standards of review and timelines prescribed therein. An award rendered on appeal shall constitute the final and binding award for all purposes.
K. THREE ARBITRATOR TRIBUNAL
Adopt only if a three member tribunal is required. This displaces the sole arbitrator default in Part C, clause 7. The applicable Verca track timeframe continues to govern; the constitution path for three arbitrators runs within that timeframe.
K.1. Notwithstanding clause 7, the tribunal shall consist of three arbitrators appointed in accordance with the Verca Rules.
L. SECTOR OVERLAY
Adopt where a sector overlay applies. The overlay operates together with the applicable Base Rules (Expedited or Complex), which continue to govern the time periods and procedural sequence.
L.1. The arbitration shall additionally be conducted under the Verca [Construction / Banking and Recovery / Corporate and Insolvency] Arbitration Rules, which apply together with, and are moulded to, the applicable Base Rules.
M. ESCALATION BEFORE ARBITRATION
Optional tiered dispute resolution. Drafted so that it does not bar urgent or interim relief and does not affect any prescription or time limit.
M.1. Before delivering a Notice of Arbitration, the parties shall first attempt in good faith to resolve the Dispute by negotiation between senior representatives within [number] business days of written notice of the Dispute, failing which by mediation administered by Verca.
M.2. This Part does not prevent a party from seeking emergency, interim or court relief under Part F at any time, and does not interrupt, extend or affect the running of any period of prescription or other time limit.
The rules referred to in this clause are set out at The rules, and are supplied in full on request.
