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II.

Arbitration Agreement /Clause


A. IRR-RA 9285, Art. 1.6 (A)(4) - Arbitration Agreement means an agreement by the parties to submit
to arbitration all or certain disputes which have arisen or which may arise between them in respect of a
defined legal relationship, whether contractual or not. An arbitration agreement may be in the form of
an arbitration clause in a contract or in the form of a separate agreement.
B. IRR-RA 9285, Art. 4.7 and 5.6 - Definition and Form of Arbitration Agreement. The arbitration
agreement, as defined in Article 1.6 A4, shall be in writing. An agreement is in writing if it is contained
in a document signed by the parties or in an exchange of letters, telex, telegrams or other means of
telecommunication which provide a record of the agreement, or in an exchange of statements of claim
and defense in which the existence of an agreement is alleged by one party and not denied by another.
The reference in a contract to a document containing an arbitration clause constitutes an arbitration
agreement provided that the contract is in writing and the reference is such as to make that clause part
of the contract.
Form of Arbitration Agreement. An arbitration agreement shall be in writing. An agreement is in
writing if it is contained in a document signed by the parties or in an exchange of letters, telex,
telegrams or other means of telecommunication which provide a record of the agreement, or in an
exchange of statements of claim and defense in which the existence of an agreement is alleged by one
party and not denied by the other. The reference in a contract to a document containing an arbitration
clause constitutes an arbitration agreement provided that the contract is in writing and the reference is
such as to make that clause part of the contract.
C. RA 876, Sec. 2 - Persons and matters subject to arbitration.- Two or more persons or parties may
submit to the arbitration of one or more arbitrators any controversy existing between them at the time
of the submission and which may be the subject of an action, or the parties to any contract may in such
contract agree to settle by arbitration a controversy thereafter arising between them. Such submission
or contract shall be valid, enforceable and irrevocable, save upon such grounds as exist at law for the
revocation of any contract.
Such submission or contract may include question arising out of valuations, appraisals or other
controversies which may be collateral, incidental, precedent or subsequent to any issue between the
parties.
A controversy cannot be arbitrated where one of the parties to the controversy is an infant, or a person
judicially declared to be incompetent, unless the appropriate court having jurisdiction approve a
petition for permission to submit such controversy to arbitration made by the general guardian or
guardian ad litem of the infant or of the incompetent.
But where a person capable of entering into a submission or contract has knowingly entered into the
same with a person incapable of so doing, the objection on the ground of incapacity can be taken only
in behalf of the person so incapacitated.
D. RA 876, Sec. 4 - Form of arbitration agreement.- A contract to arbitrate a controversy thereafter
arising between the parties, as well as a submission to arbitrate an existing controversy shall be in
writing and subscribed by the party sought to be charged, or by his lawful agent.
The making of a contract or submission for arbitration described in section two hereof, providing for
arbitration of any controversy, shall be deemed a consent of the parties to the jurisdiction of the Court

of First Instance of the province or city where any of the parties resides, to enforce such contract or
submission.
E. IRR-RA 9285, Art. 4.8 and 5.7 - Arbitration Agreement and Substantive Claim Before Court.
(a) A court before which an action is brought in a matter which is the subject of an arbitration
agreement shall, if at least one party so requests not later than the pre-trial conference, or upon the
request of both parties thereafter, refer the parties to arbitration unless it finds that the arbitration
agreement is null and void, inoperative or incapable of being performed.
(b) Where an action referred to in the previous paragraph has been brought, arbitral proceedings may
nevertheless be commenced or continued, and an award may be made, while the issue is pending before
the court.
(c) Where the action is commenced by or against multiple parties, one or more of whom are parties to
an arbitration agreement, the court shall refer to arbitration those parties who are bound by the
arbitration agreement although the civil action may continue as to those who are not bound by such
arbitration agreement.
Arbitration Agreement and Substantive Claim Before Court.
(a) A party to an action may request the court before which it is pending to stay the action and to refer
the dispute to arbitration in accordance with their arbitration agreement not later than the pre-trial
conference. Thereafter, both parties may make a similar request with the court. The parties shall be
referred to arbitration unless the court finds that the arbitration agreement is null and void, inoperative
or incapable of being performed.
(b) Where an action referred to in paragraph (a) of this Article has been brought, arbitral proceedings
may nevertheless be commenced or continued, and an award may be made, while the issue is pending
before the court.
(c) Where the action is commenced by or against multiple parties, one or more of whom are parties to
an arbitration agreement, the court shall refer to arbitration those parties who are bound by the
arbitration agreement although the civil action may continue as to those who are not bound by such
arbitration agreement.
F. Points to consider in drafting arbitration clauses G. Pathological Causes H. IRR-RA 9285, Article 4.9 and 5.7 - Article 4.9. Arbitration Agreement and Interim Measures by
Court.
(a) It is not incompatible with an arbitration agreement for a party to request from a court, before the
constitution of the arbitral tribunal or during arbitral proceedings, an interim measure of protection and
for a court to grant such measure.
(b)To the extent that the arbitral tribunal has no power to act or is unable to act effectively, a request for
interim measures of protection, or modification thereof as provided for, and in the manner indicated in,
Article 4.17 (Power of Arbitral Tribunal to Order Interim Measures), may be made with the court. The
rules on interim or provisional relief provided for in paragraph
(c) of Article 4.17, of these Rules shall be observed. A party may bring a petition under this Article
before the court in accordance with the Rules of Court or tre Special ADR Rules.
Article 5.7. Arbitration Agreement and Substantive Claim Before Court.
(a) A party to an action may request the court before which it is pending to stay the action and to refer
the dispute to arbitration in accordance with their arbitration agreement not later than the pre-trial

conference. Thereafter, both parties may make a similar request with the court. The parties shall be
referred to arbitration unless the court finds that the arbitration agreement is null and void, inoperative
or incapable of being performed.
(b) Where an action referred to in paragraph (a) of this Article has been brought, arbitral proceedings
may nevertheless be commenced or continued, and an award may be made, while the issue is pending
before the court.
(c) Where the action is commenced by or against multiple parties, one or more of whom are parties to
an arbitration agreement, the court shall refer to arbitration those parties who are bound by the
arbitration agreement although the civil action may continue as to those who are not bound by such
arbitration agreement.