If a contract requires binding arbitration in Tehran, can mediation be pursued first without voiding the clause?

Question

I signed a supplier contract in Tehran that says disputes must go to binding arbitration. A mediator suggested trying mediation first to resolve the issue, but I'm unsure if that would waive our arbitration rights. How would mediation affect the enforceability of the arbitration clause and the overall timeline under Iranian law?

Sepehr law firm · Accepted Answer

It does not undermine the arbitration clause agreed upon by the parties. However, if you wish to put the mediation terms in writing, we would suggest to use the wording to the effect that \"all other terms and conditions of the supply contract, unless otherwise agreed upon herein, shall remain in full force and effect\". As to the timing, it depends on how you agree with your counterparty. If you want the mediation a two months period, arbitration will be delayed by the same period.

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Best,

Milani Law Firm · Answer

The existence of an arbitration clause does not preclude mediation before resorting to arbitration. It is recommended that you put it in writing to formalize the mediation process. In any case, the validity of the arbitration clause is terminated only by agreement of the parties to the contract.

If a contract requires binding arbitration in Tehran, can mediation be pursued first without voiding the clause?

Lawyer Answers

Sepehr law firm

Milani Law Firm

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