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ARBITRATION: means a voluntary dispute resolution process in which one or more
arbitrators, appointed in accordance with the agreement of the parties, or rules

promulgated pursuant to this Act, resolve a dispute by rendering an award.
Ad-Hoc and Institutional (DOJ CIRCULAR NO. 98)
AD HOC ARBITRATION: means an arbitration administered by an arbitrator and/or

the parties themselves. An arbitration administered by an institution shall be regarded
as an ad hoc arbitration if such institution is not a permanent or regular arbitration
institution in the Philippines.
INSTITUTIONAL ARBITRATION: means arbitration administered by an entity, which

is registered as a domestic corporation with the Securities and Exchange Commission
(SEC) and engaged in, among others, arbitration of disputes in the Philippines on a
regular and permanent basis.
COMMERCIAL ARBITRATION: an arbitration is “commercial” if it covers matter

arising from all relationships of a commercial nature, whether contractual or not.
CONSTRUCTION ARBITRATION
SECTION 34: ARBITRATION OF CONSTRUCTION DIPSUTE: GOVERNING LAW. – The

arbitration of construction disputes shall be governed by Executive Order No. 1008,
otherwise known as the Construction Industry Arbitration Law.
SECTION 35: COVERAGE OF THE LAW. – Construction disputes which fall within the
original and exclusive jurisdiction of the Construction Industry Arbitration Commission
(the “Commission”) shall include those between or among parties to, or who are
otherwise bound by, an arbitration agreement, directly or by reference whether such
parties are project owner, contractor, subcontractor, fabricator, project manner, design
professional, consultant, quantity surveyor, bondsman or issuer of an insurance policy
in a construction project.
The Commission shall continue to exercise original and exclusive jurisdiction over
construction disputes although the arbitration is “commercial” pursuant to Section 21 of
this Act.
FOREIGN ARBITRATION v LOCAL ARBITRATION (DOMESTIC ARBITRATION v

INTERNATIONAL ARBITRATION)
SECTION 19: ADOPTION OF THE MODEL LAW ON INTERNATIONAL COMMERCIAL

ARBITRATION. – International commercial arbitration shall be governed by the Model
Law on International Commercial Arbitration (the “Model Law”) adopted by the United
1
Nations Commission on International Trade Law on 21 June 1985 (United Nations
Document A/40/17) and recommended for enactment by the General Assembly in
Resolution No 40/72 approved on 11 December 1985, a copy of which is hereto
attached as Appendix A.
UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION

(Chap. I, Art. 1, Par. 3)
(3) An arbitration is international if:
a) The parties to an arbitration agreement have, at the time of the conclusion of

that agreement, their places of business in different States; or
b) One of the following places is situated outside the State in which the parties
have their places of business:
i. The place of arbitration if determined in, or pursuant to, the arbitration
agreement;
ii. Any place where a substantial part of the obligations of the commercial
relationship is to be performed or the place with which the subject-matter
of the dispute is most closely connected; or
c) The parties have expressly agreed that the subject matter of the arbitration
agreement relates to more than one country.
REQUISITES TO AN ARBITRATION AGREEMENT
1. CONSENT: (SECTION 2, RA 876)
SECTION 2: PERSONS AND MATTERS SUBJECT TO ARBITRATION. – Two or more

persons or parties may submit to the arbitration of one or more arbitrators any
controversy existing between them at the time of the submission and which may be the
subject of an action, or the parties to any contract may in such contract agree to settle
by arbitration a controversy thereafter arising between them. Such submission or
contract shall be valid, enforceable and irrevocable, save upon such grounds as exist at
law for the revocation of any contract.
Such submission or contract may include question arising out of valuations, appraisals
or other controversies which may be collateral, incidental, precedent or subsequent to
any issue between the parties.
A controversy cannot be arbitrated where one of the parties to the controversy is an

infant, or a person judicially declared to be incompetent, unless the appropriate court
having jurisdiction approve a petition for permission to submit such controversy to
arbitration made by the general guardian or guardian ad litem of the infant or of the
incompetent.
2
But where a person capable of entering into a submission or contract has knowingly
entered into the same with a person incapable of so doing, the objection on the ground
of incapacity can be taken only in behalf of the person so incapacitated.
2. SUBJECT: EXCEPTIONS:
SECTION 6, RA 9285: EXCEPTION TO THE APPLICATION OF THIS ACT. – The

provisions of this Act shall not apply to resolution or settlement of the following:
a) Labor disputes covered by Presidential Decree No. 442, otherwise known as the
Labor Code of the Philippines, as amended and its Implementing Rules and
Regulations;
b) The civil status of persons;
c) The validity of marriage;
d) Any ground for legal separation;
e) The jurisdiction of courts;
f) Future legitime;
g) Criminal liability; and
h) Those which by law cannot be compromised.
3. CONSIDERATION
4. FORM (SECTION 4, RA 876)
Section 4. Form of arbitration agreement. - A contract to arbitrate a controversy

thereafter arising between the parties, as well as a submission to arbitrate an existing
controversy shall be in writing and subscribed by the party sought to be charged, or by
his lawful agent.
The making of a contract or submission for arbitration described in section two hereof,
providing for arbitration of any controversy, shall be deemed a consent of the parties to
the jurisdiction of the Court of First Instance of the province or city where any of the
parties resides, to enforce such contract or submission.

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ARBITRATION: means a voluntary dispute resolution process in which one or more

arbitrators, appointed in accordance with the agreement of the parties, or rules

Ad-Hoc and Institutional (DOJ CIRCULAR NO. 98)

AD HOC ARBITRATION: means an arbitration administered by an arbitrator and/or

INSTITUTIONAL ARBITRATION: means arbitration administered by an entity, which

COMMERCIAL ARBITRATION: an arbitration is “commercial” if it covers matter

SECTION 34: ARBITRATION OF CONSTRUCTION DIPSUTE: GOVERNING LAW. – The

FOREIGN ARBITRATION v LOCAL ARBITRATION (DOMESTIC ARBITRATION v

SECTION 19: ADOPTION OF THE MODEL LAW ON INTERNATIONAL COMMERCIAL

UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION

(3) An arbitration is international if:

a) The parties to an arbitration agreement have, at the time of the conclusion of

REQUISITES TO AN ARBITRATION AGREEMENT

1. CONSENT: (SECTION 2, RA 876)

SECTION 2: PERSONS AND MATTERS SUBJECT TO ARBITRATION. – Two or more

A controversy cannot be arbitrated where one of the parties to the controversy is an

SECTION 6, RA 9285: EXCEPTION TO THE APPLICATION OF THIS ACT. – The

Section 4. Form of arbitration agreement. - A contract to arbitrate a controversy

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