Document background
The Oral Arbitration Agreement serves as a formal record of parties' verbal commitment to resolve disputes through arbitration under German law. This document type is particularly useful in situations where parties have agreed verbally to arbitration and need to document their understanding for future reference and enforcement purposes. While German law generally allows for oral arbitration agreements, documenting them helps ensure clarity and enforceability. The document captures essential elements required under the German Code of Civil Procedure (ZPO), including the scope of arbitrable disputes, arbitrator selection process, and procedural framework. It's commonly used in business relationships where parties prefer flexibility but need a clear dispute resolution mechanism. The Oral Arbitration Agreement also considers international enforceability aspects, particularly relevant when parties operate across borders or when enforcement might be sought under the New York Convention.
