Arbitration Submission Agreement Template for Malaysia

An Arbitration Submission Agreement provides you with a legally binding framework to resolve existing disputes through arbitration rather than pursuing costly and time-consuming court litigation. Under Malaysian law, particularly the Arbitration Act 2005, this document creates an enforceable obligation for all parties to submit their dispute to arbitration proceedings and waive their right to pursue the matter through the Malaysian court system.

When do you need this document?

You need an Arbitration Submission Agreement when you have an existing commercial dispute that requires resolution outside the traditional court system. This typically occurs in business-to-business conflicts involving contract breaches, partnership disputes, construction project disagreements, or international trade disagreements where parties prefer the confidentiality and expertise of arbitration. Unlike arbitration clauses included in original contracts, you execute this agreement after the dispute has already arisen, making it particularly useful when your original contract lacked arbitration provisions or when non-contracting parties need to join the arbitration process.

Key legal considerations

Your arbitration submission agreement must clearly define the scope of the dispute being submitted to arbitration, ensuring that all relevant claims and counterclaims are properly included within the arbitral tribunal's jurisdiction. You should specify the arbitration rules that will govern the proceedings, such as the Asian International Arbitration Centre (AIAC) Rules, and outline the process for appointing arbitrators, including qualifications and potential conflicts of interest. The agreement must include provisions for the seat of arbitration, applicable substantive law, language of proceedings, and confidentiality requirements. You also need to address cost allocation, interim relief procedures, and enforcement mechanisms to ensure the arbitral award will be binding and enforceable under both Malaysian law and international conventions.

Legal requirements in Malaysia

Under the Arbitration Act 2005, your submission agreement must comply with specific Malaysian legal requirements to ensure validity and enforceability. The agreement must be in writing and signed by all parties, clearly demonstrating their intention to submit the dispute to arbitration and waive their right to court proceedings. You must ensure the agreement complies with the Contracts Act 1950 regarding contract formation, including proper offer, acceptance, and consideration. The dispute scope must be arbitrable under Malaysian law, excluding matters such as criminal offenses or certain family law issues that cannot be resolved through arbitration. Additionally, if your arbitration involves international elements, you should ensure compliance with the New York Convention requirements to facilitate recognition and enforcement of any resulting arbitral award in other jurisdictions. The agreement should also specify whether Malaysian substantive law or foreign law will govern the merits of the dispute, while ensuring procedural compliance with Malaysian arbitration standards.