Agreement To Arbitrate Form Template for New Zealand

An Agreement to Arbitrate Form is your pathway to resolving commercial disputes efficiently and confidentially outside New Zealand's court system. This legal document creates a binding commitment between parties to submit future disputes to arbitration, offering a faster and often more cost-effective alternative to traditional litigation.

When do you need this document?

You need an arbitration agreement when entering into significant commercial relationships where disputes could arise. This includes major supply contracts, joint venture agreements, construction projects, intellectual property licensing, franchise arrangements, and complex service agreements. The document is particularly valuable in industries requiring technical expertise, such as engineering, IT, or specialised manufacturing, where arbitrators with relevant experience can make more informed decisions than generalist judges. You should also consider arbitration when dealing with international parties, as arbitration awards are more easily enforceable across borders under international treaties.

Key legal considerations

Your arbitration agreement must clearly define the scope of disputes covered, whether all disagreements or only specific types of conflicts. You need to specify which arbitration rules will apply, such as those from the Arbitration and Mediation Institute of New Zealand (AMINZ) or international bodies like the ICC. The agreement should detail the appointment process for arbitrators, including whether you want a single arbitrator or a panel, and how they will be selected. Consider including provisions for emergency relief, confidentiality obligations, and the seat of arbitration, which determines the supervisory court and applicable procedural law. You must also address cost allocation, as arbitration can involve substantial fees for arbitrator time, venue rental, and administrative costs.

Legal requirements in New Zealand

Under the Arbitration Act 1996, your agreement must be in writing and clearly express the parties' intention to arbitrate. The Act incorporates the UNCITRAL Model Law, ensuring international compatibility while maintaining New Zealand's specific procedural requirements. The Contract and Commercial Law Act 2017 governs the formation and validity of your arbitration agreement, requiring standard contract essentials like offer, acceptance, and consideration. Your agreement must respect natural justice principles under the New Zealand Bill of Rights Act 1990, ensuring fair hearings and unbiased decision-making. Be aware that certain disputes cannot be arbitrated, including some consumer protection matters and criminal law issues. The Limitation Act 2010 still applies to arbitration, so timing restrictions for bringing claims remain relevant even outside the court system.