An arbitration clause is often drafted at the point in a negotiation when parties are least focused on disputes — which is exactly why so many clauses fail to anticipate how a real disagreement is likely to unfold.
Common gaps include ambiguity over the seat and venue of arbitration, unclear language on the number and appointment of arbitrators, and silence on interim relief and confidentiality.
A well-drafted clause should also address the scope of arbitrable disputes clearly, to avoid satellite litigation over whether a particular dispute even falls within the clause.
Investing time in the dispute resolution clause during negotiation — rather than treating it as boilerplate — materially reduces the cost and uncertainty of resolving a dispute later.