Common use of Disputes between Clause in Contracts

Disputes between. the contracting parties relating to the interpretation or application of this agreement 1. Any dispute relating to the interpretation or application of this Agreement shall be settled as far as possible through diplomatic channels. 2. If the absence of a settlement through diplomatic channels, the dispute shall be submitted to a joint commission consisting of representatives of the two Parties; this commission shall convene without undue delay at the request of the first party to take action. 3. If the joint commission cannot settle the dispute, the latter shall be submitted, at the request of either Contracting Party, to an arbitration court set up as follows for each individual case: Each Contracting Party shall appoint one arbitrator within a period of two months from the date on which either Contracting Party has informed the other Party of its intention to submit the dispute to arbitration. Within a period of two months following their appointment, these two arbitrators shall appoint by mutual agreement a national of a third State as chairman of the arbitration court. If these time limits have not been complied with, either Contracting Party shall request the President of the International Court of Justice to make the necessary appointment(s). If the President of the International Court of Justice is a national of either Contracting Party or of a State with which one of the Contracting Parties has no diplomatic relations or if, for any other reason, he cannot exercise this function, the Vice- President of the International Court of Justice shall be requested to make the appointment(s). 4. The court thus constituted shall determine its own rules of procedure. Its decisions shall be taken by majority of the votes; they shall be final and binding on the Contracting Parties. 5. Each Contracting Party shall bear the costs resulting from the appointment of its arbitrator. The expenses in connection with the appointment of the third arbitrator and the administrative costs of the court shall be borne equally by the Contracting Parties.