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Chapter I
Arbitration Agreement

Section 11.
An arbitration agreement means an agreement by which the parties agree to settle all or certain disputes which arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not, by arbitration. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separated arbitration agreement.

An arbitration agreement shall be in writing and signed by the parties.  In the case where an agreement is contained in an exchange of letters, facsimile, telegrams, telex, information with electronic signature, or other forms of communication which provide a record of the agreement, or in the case where the existence of an agreement is alleged in a claim or defense by one party and not denied by another, an arbitration agreement shall be deemed to be existed.

A contract, which refers to a document containing an arbitration clause with the purpose of making that clause, as a part thereof shall be deemed to have an arbitration agreement.

Section 12.
The perfection of an arbitration agreement and the appointment of arbitrators shall not be affected even any party is dead, dissolved, subjected to an absolute receivership order, or incompetent or quasi-incompetent by the Court order.

Section 13.
If any claim or liability has been transferred, the transferee shall be bound by an arbitration agreement related thereto.

Section 14. 
In the case where an action in a matter which is the subject of a arbitration agreement is brought to the Court by one party without referring to the arbitral tribunal in accordance with an arbitration agreement, the others may submit, within the date for filing his or her statement or the period for filing his or her statement as prescribed by law, his or her request to dispose of the case and refer to arbitration to the competent Court. The Court shall, after making inquiries, dispose of the case, unless it appears that the arbitration agreement is void, inoperative, or incapable of being performed.

While the request is pending before the Court under paragraph one, the arbitral proceedings may be commenced by any party or may be continued by the arbitral tribunal.

Section 15.
In a contract between a government agency and private party, whether administrative contract or not, the parties thereto may agree to settle their disputes by arbitration. The parties to the contract shall be bound by such arbitration agreement.

Section 16.
The parties to the arbitration agreement may, before or during the arbitral proceedings, request the competent Court to impose a provisional measure in order to protect their interests. If the Court considers that such request, if filed to it, is within its jurisdiction, the Court shall consider the request. In this regards, the provisions of the law on Court proceedings related therewith shall be applied mutatis mutandis.

If an order imposing a provisional measure has been given upon request of the party under paragraph one ant such party fails to refer to the arbitration within thirty days as from the date in which the Court having an order or within the period as prescribed by the Court, such order of the Court shall be deemed to be terminated upon the lapse of the aforesaid period.

Chapter II
Arbitral Tribunal


Section 17.
The arbitral tribunal shall compose of arbitrators in an odd number.

In the case where the parties determine the number of arbitrators in an even number, those arbitrators shall jointly appoint another arbitrator to be the Chairperson of the arbitral tribunal.  The procedure on an appointment of the Chairperson of the arbitral tribunal shall be in accordance with Section 18 paragraph one (2).

If the parties are unable to agree on the number of arbitrators, there shall be a sole arbitrator.

Section 18.
Unless otherwise agreed by the parties, an appointment of the arbitral tribunal shall be made as follows:

(1)    if the parties agree to have sole arbitrator but they are unable to agree on the arbitrator, the arbitrator shall be appointed by the competent Court upon request of a party;
(2)    if the parties agree to have more than one arbitrator, each party shall appoint the arbitrators in an equal number, and those arbitrators shall then jointly appoint another arbitrator. If a party fails to appoint the arbitrators within thirty days as from the date of receiving a request to appoint the arbitrators from another party, or if the arbitrators appointed by each party fail to jointly appoint the Chairperson of the arbitral tribunal within thirty days as from the date of their appointment, the arbitrators or the Chairperson of the arbitral tribunal shall be appointed by the competent Court upon request of a party.

In the case where the appointment procedure agreed upon by the parties under paragraph one provides no means for securing the appointment, the arbitrator shall be appointed by the competent Court upon request of a party if it appears that:
(1)   a party fails to act as required under the agreed procedure;
(2)   the parties, or the arbitrators, are unable to reach an agreement under the agreed procedure;
(3)   a third party, or any institution, fails to act as required under the agreed procedure.

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