What is an arbitration clause (arbitraal beding) under Dutch law?

Dutch term: Arbitraal beding | Legal basis: Articles 1020-1023 Rv

An arbitration clause (arbitraal beding) is a contractual provision by which the parties agree to submit disputes to arbitration rather than to the ordinary courts. Under articles 1020 to 1023 of the Dutch Code of Civil Procedure, the arbitration clause must be evidenced in writing and can cover all or specific categories of disputes.

A valid arbitration clause excludes the jurisdiction of the Dutch courts for the disputes covered by it. If a party files court proceedings despite an arbitration clause, the other party can raise a jurisdictional objection. Dutch courts will generally respect a valid arbitration clause and decline jurisdiction. The clause can designate any arbitration institution (NAI, ICC, UNCITRAL, LCIA) or ad hoc arbitration.

Why it matters for international businesses

Getting the arbitration clause right at the drafting stage is one of the most important steps in any international commercial contract. A poorly drafted clause creates procedural fights before the substance is ever addressed.