Common use of Settlement of Disputes between the Parties Clause in Contracts

Settlement of Disputes between the Parties. 1. Any dispute between the Parties concerning the interpretation or application of this Chapter shall, as far as possible, be settled with consultation through diplomatic channel. 2. If a dispute cannot thus be settled within 6 months, it shall, upon the request of either Party, be submitted to an ad hoc arbitral tribunal. 3. Such tribunal comprises of 3 arbitrators. Within 2 months of the receipt of the written notice requesting arbitration, each Party shall appoint one arbitrator. Those 2 arbitrators shall, within further 2 months, together select a national of a third State having diplomatic relations with both Parties who, upon approval by the Parties, shall be appointed as Chairman of the arbitral tribunal. 4. If the arbitral tribunal has not been constituted within 4 months from the receipt of the written notice requesting arbitration, either Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make any necessary appointments. If the President is a national of either Party or is otherwise prevented from discharging the said functions, the Member of the International Court of Justice next in seniority who is not a national of either Party or is not otherwise prevented from discharging the said functions shall be invited to make such necessary appointments. 5. The arbitral tribunal shall determine its own procedure. The arbitral tribunal shall reach its award in accordance with the provisions of this Agreement and the principles of international law recognized by both Parties. 6. The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Parties. The arbitral tribunal shall, upon the request of either Party, explain the reasons of its award. 7. Each Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant costs of the Chairman and tribunal shall be borne in equal parts by the Parties.

Settlement of Disputes between the Parties. 1. Any dispute between the Parties concerning relative to the interpretation or application of this Chapter shall, Agreement will be as far as possible, be possible settled with consultation through diplomatic channelchannels. 2. If a it is not possible to settle the dispute cannot thus be settled in this way within 6 monthssix months from the start of the negotiations, it shallwill be submitted, upon at the request of either Partyof the two Parties, be submitted to an ad hoc arbitral arbitration tribunal. . 3. Such The tribunal comprises of 3 arbitrators. Within 2 months of shall be set up in the receipt of the written notice requesting arbitration, following way: each Party shall appoint one arbitrator. Those 2 an arbitrator and these two arbitrators shall, within further 2 months, together select shall elect a national of a third State having diplomatic relations with both Parties who, upon approval by country as the Parties, president. The arbitrators shall be appointed as Chairman within three months and the president within five months from the date on which either of the arbitral two Parties informed the other Party of its intention to submit the dispute to arbitration tribunal. 4. If within the arbitral tribunal has periods specified in paragraph 3 of this Article the necessary appointments have not been constituted within 4 months from the receipt of the written notice requesting arbitrationmade, either Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make any ofJusticetomake necessary appointments. If the President is a national of either Party or if he is otherwise prevented from discharging the said functionsfunction, the Vice- President shall be invited to make the necessary appointments. If the Vice-President is a national of either Party or if he is also prevented from discharging the said function, the Member of the International Court of Justice next in seniority who is not a national of either Party or is not otherwise prevented from discharging the said functions shall be invited to make such the necessary appointments. 5. The arbitral tribunal shall determine issue its own procedure. The arbitral tribunal shall reach its award decision on the basis of respecting the national law, the rules contained in accordance with this Agreement, as well as the provisions of this Agreement and the universally accepted principles of international law recognized by both Partieslaw. 6. The arbitral arbitration tribunal shall lay down its own procedure. 7. The tribunal shall reach its award decision by a majority of votes. Such award votes and that decision shall be final and binding upon on both Parties. The arbitral tribunal shall, upon the request of either Party, explain the reasons of its award. 78. Each Party shall bear the costs expenses of its the arbitrator appointed arbitrator by it and of its representation those connected with representing it in arbitral the arbitration proceedings. The relevant costs other expenses, including those of the Chairman and tribunal president, shall be borne in equal parts by the two Parties.