Arbitration Support of a Contract

1. Arbitration support of a contract is an innovative service rendered by the AICAC. It is an instrument of organizational and legal protection of rights and interests of parties to commercial contracts from unscrupulous contractors.

2. As for the mechanism of realization, arbitration support of a contract is a special regime of execution of a contract by the parties under documentary and legal supervision of the AICAC.

3. The regime of arbitration support of a contract is activated at the request of the parties to the contract regardless of whether the AICAC has the competence for settlement of disputes arising from the contract through arbitration.

4. A special feature of arbitration support of a contract is the fact that this regime is activated before a dispute between the parties to the contract arises from a relevant commercial contract. It is not directly connected to settlement of controversies between the parties.

5. By its legal nature the regime of arbitration support of a contracthas preventive character (prevention of offenses). This regime ensures efficient, objective, comprehensive and fair settlement of a dispute, which may arise between the parties.

6. The regime of arbitration support of a contract is based on the procedure of documentaryand legal control. It includes the synchronous receipt (as the corresponding events occur and within a reasonable period after their occurrence), expert processing and systematization by the AICAC of legally significant information about the process of execution of a contract, provided to the Court by the parties such contract.

7.Arbitration support of a contract can have the form of passive or active documentary and legal control.Passive documentary legal control means that the AICAC performs the systematization and legal assessment of information related to the contract in order to use such data in the event of a possible dispute between the parties (subject to arbitral settlement), without informing the parties about the results of the legal assessment of the relevant data performed by the AICAC. As for the active documentary and legal control,in addition to systematization and legal assessment of relevant information,the AICAC shall also send consultative notes or notations to parties, based on the results of assessment of the timeliness and completeness of fulfillment of contractual obligations by the parties (such assessment is to be performed by the arbitration institution as well).

8.A "blank note contract" is a special form of arbitration support of a contract. It assumes that the parties conclude the relevant contract using the official high-security (with several levels of protection against forgery) letterhead of the AICAC. In this case, in addition to authority associated with the arbitration support of a contract, the AICAC shall also have the right to demand (jointly with the injured party) immediate fulfillment of contractual obligations from the violator of contract provisions, and claim compensation forthe damage inflicted thereby.This additional right of the AICAC does not give rise to any other proprietary or liability rights of the AICAC (arising from the contract or related to it) in relation to the parties to the contract.

9.Arbitration support of a contract is not a form of participation of the AICAC in a contract concluded between the parties. It does not imply emergence of any rights or obligations of the Court associated with this contract or arising therefrom with respect to the parties to the contract, except for the rights and obligations directly related to implementation of the arbitration support procedure.

10.Arbitration support of a contract does not create any additional obligations for parties to the contract towards each other or the AICAC, except for the obligation to provide the AICAC with relevant information, recognize the authority of the AICAC over the arbitration support of the contract,as well as the obligation to pay for the services rendered by the AICAC related to arbitration support of a contract.

11.Arbitration support of a contract shall be considered to have started, in accordance with the will of its parties, after the conclusion of the contract or any other stage of its execution by the parties. It shall be considered to have ended after the complete fulfillment of the contract by the parties or its termination upon the initiative of authorized persons, or at any other time.

12.Arbitration support of a contract, in accordance with the will of its parties, may concern the entire scope of contractual obligations of the parties or its individual parts.

13. Arbitration support of a contract is characterized by the set of special legal features determining the appropriateness of this mechanism in commercial practice. In particular, implementation of the regime of arbitration support of a contract can bring the following effects:

  • Prevention;
  • Increased responsibility of the parties;
  • Practical impossibility to deceive an arbitration court, and guaranteed objectivity of proceedings;
  • Increased period of time for legal assessment of relevant facts;
  • Efficiency, shorttimeframe and cost-effectiveness of arbitral proceedings;
  • High potential of correcting actions of the parties without conducting the arbitrationproceedings;
  • Additional guarantees in relation to fulfillment of contractual obligations in the framework of using the consultative notations of the AICAC and subsidiary responsibility of the AICAC.

14. Ifarbitration support of a contract is implemented usingthe regime of consultative notations,the AICACshall be subsidiarily liable to the injured party to the contract for guilty sending of untimely or inconsistent with the actual state of affairs consulting notes(when having an actual opportunity to perform thisobligation properly). Such subsidiary responsibility shall be related to the defaulted obligationof the contract breaching party (including the responsibility for negative consequences of non-execution) due to which the AICAC has failed to issue a timely or proper consultation note.

15. The cost of services related to arbitration support of a contract shall be determined according to special Regulations of the AICAC.