Common use of Dispute Settlement between the Parties Clause in Contracts

Dispute Settlement between the Parties. 1. Disputes between the Parties concerning the interpretation or application of this Agreement shall primarily be resolved through mutual consultations and negotiations. 2. If the dispute is not resolved in this manner within six months after the date of its origin, then, at the request of any Party, it will be put to arbitration in accordance with the provisions of this Article. 3. The Arbitral Tribunal shall be constituted for each individual case in the following manner. two months of receipt of a written request for arbitration, each Party shall appoint one member of the court. The two members will be elected in a third country national who, with the approval of the Parties shall be appointed Chairman of the Tribunal (the president). Chairman shall be appointed within three months after the appointment of the other two members. 4. If the necessary appointments are not made within the time prescribed in paragraph 3 of this Article, but in the absence of the agreement, each party may invite the President of the International Court of Justice to make the necessary appointments. If he is a citizen of a Party or otherwise prevented from discharging the said function, the Vice President will be invited to make the necessary appointments. If the latter is also a Party or any other reason can not fulfill this function, then make the necessary appointments will be invited to the UN International Court of Justice next in seniority member who is not a citizen and is not normally able to perform this function. 5. The arbitral tribunal shall adopt its decisions by majority vote. These decisions will be binding for each party. Each party will bear its own member and of its representation in the arbitration proceedings costs, the president and other costs would be of equal size. The Arbitral Tribunal shall determine its own procedure.