This Contract shall be governed by and construed in accordance with Hong Kong/English* law and any dispute arising out of or in connection with this Contract shall be referred to arbitration in Hong Kong in accordance with the Arbitration Ordinance (Cap.609) or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause.
The reference shall be to three arbitrators, [#], one to be appointed by each of the parties hereto and the third by the two so chosen, and their decision or that of any two of them shall be final and binding. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its arbitrator within 14 calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the 14 days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within 14 days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if that arbitrator had been appointed by agreement.
Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator.
In cases where neither the claim nor any counterclaim exceeds the sum of USD50,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the Hong Kong International Arbitration Centre Small Claims Procedure current at the time when the arbitration proceedings are commenced.
(*Delete as appropriate. If no deletion is made, Hong Kong law shall apply).
(#The words "who shall ordinarily be resident in Hong Kong" may be inserted here. The appointment of an arbitrator resident outside Hong Kong may substantially increase the costs and result in delay).
N.B. The above clause can be incorporated into a contract using one of the following short form alternatives:-
(a) Arbitration in Hong Kong in accordance with the "Hong Kong Maritime Arbitration Clause", Hong Kong law to apply.
(b) Arbitration in Hong Kong in accordance with the "Hong Kong Maritime Arbitration Clause", English law to apply.