Applicable Law Arbitration Agreement Template for Switzerland

An Applicable Law Arbitration Agreement is a specialized legal document that establishes Swiss law as the governing law for your commercial relationship while designating arbitration as the primary method for resolving disputes. This agreement combines two critical elements: the choice of Swiss law to govern your contractual relationship and the selection of arbitration as your dispute resolution mechanism. By choosing Switzerland, you benefit from one of the world's most respected and neutral arbitration jurisdictions.

When do you need this document?

You need this agreement when entering into international commercial relationships where legal certainty is paramount. It's essential for joint ventures between companies from different countries, international supply agreements, technology licensing deals, and financial services contracts. Manufacturing companies often use these agreements when establishing long-term supplier relationships, while investment firms rely on them for cross-border partnership agreements. Construction companies working on international projects particularly benefit from Switzerland's expertise in complex commercial arbitration. Technology companies entering licensing agreements or joint development projects also frequently choose Swiss law and arbitration for its reliability and enforceability.

Key legal considerations

The agreement must clearly specify which aspects of Swiss law govern your relationship, whether it's contract formation, performance, or breach remedies. You should carefully define the scope of disputes covered by the arbitration clause, ensuring it captures all potential conflicts arising from your commercial relationship. The selection of arbitration rules is crucial - you can choose institutional rules like the Swiss Rules of International Arbitration or Swiss Chambers' Arbitration Institution rules. Consider the number of arbitrators, their selection process, and required qualifications for your specific industry. Language of proceedings, seat of arbitration, and applicable procedural rules must be precisely defined. You should also address confidentiality requirements, interim relief availability, and the finality of arbitral awards to avoid future complications.

Legal requirements in Switzerland

Under the Swiss Private International Law Act (PILA), Articles 176-194 govern international arbitration agreements and require written form for validity. Your agreement must clearly express the parties' intention to submit disputes to arbitration and identify the legal relationship covered. Swiss law requires that arbitration agreements be independent of the main contract, meaning invalidity of the underlying agreement doesn't automatically invalidate the arbitration clause. The Swiss Code of Obligations provides the foundational contract law principles, including good faith requirements that apply to arbitration agreement formation and interpretation. Switzerland's adherence to the New York Convention ensures international enforcement of arbitral awards. The agreement must respect Swiss public policy requirements and cannot exclude certain mandatory legal protections. Professional legal review is essential to ensure compliance with Switzerland's specific arbitration framework and to optimize enforceability across multiple jurisdictions where you conduct business.