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Results: 4 Answers
International Arbitration
3.
Arbitration agreement
3.1
What are the validity requirements for an arbitration agreement in your jurisdiction?
 
Montenegro
For an arbitration agreement to be valid and enforceable, it must:

  • be concluded or deemed to be concluded in writing (Article 9(3) of the Arbitration Act);
  • be concluded by the parties, which have the necessary capacity to do so (Article 9(1)); and
  • refer to disputes which:
    • arise from a defined legal relationship, whether contractual or not (Article 9(1)); and
    • are capable of settlement by arbitration under Montenegrin law (Articles 3(2), 48(2)(1) and 52(2)(1)).
For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
3.2
Are there any provisions of legislation or any other legal sources in your jurisdiction concerning the separability of arbitration agreements?
 
Montenegro
Yes, the Arbitration Act prescribes that an arbitration agreement may be concluded in the form of either a separate agreement or an arbitration clause within a broader contract between the parties (Article 9(2)). Even if the arbitration agreement is concluded in the form of an arbitration clause, that clause shall be treated separately from the underlying contract when ruling on the existence or validity of the arbitration agreement (Article 19(3)).

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
3.3
Are there provisions on the seat and/or language of the arbitration if there is no agreement between the parties?
 
Montenegro
Yes, the Arbitration Act contains rules on both the seat and the language of the proceedings if the parties have not agreed on these issues.

In that sense, Article 32 of the Arbitration Act provides that the seat or place of arbitration:

  • shall be determined by the arbitral tribunal, having regard to the circumstances of the case, including the convenience of the parties;
  • shall be determined according to the rules of the arbitral institution to which the parties entrusted the administration of their case; or
  • if not established as per the above, shall be deemed to be the place designated in the arbitral award as the place where the arbitral award was made.

Notwithstanding the above, the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for conducting deliberations; hearing witnesses, experts or the parties; or inspecting goods, property or documents.

Under the Arbitration Act, the arbitral tribunal will determine the language or languages to be used in the proceedings. Otherwise, the language in international arbitrations shall be English by default (Article 34).

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law