a. The following terms, wherever mentioned in this law shall have the meanings assigned to them below unless the context indicates otherwise:

Arbitration Panel: The body formed from one or more arbitrators to decide on the dispute referred to arbitration according to the provisions of this law.

Competent Court: The Court of Appeals within whose jurisdiction the arbitration is conducted unless the parties agree on the jurisdiction of another Court of Appeals in the Kingdom[1].

Seat of Arbitration: The country agreed upon by the parties to the arbitration as the seat of arbitration or the country whose arbitration law is agreed upon by the parties to apply to the arbitration procedures or the country chosen by the arbitration panel as its seat in the absence of an agreement.

Competent Judge: The head of the competent court or any of its judges authorized in writing.

b. The term (parties to the arbitration), wherever mentioned in this law, refers to the parties to the arbitration or the parties involved in the arbitration, as the case may be.

[1] The term “Kingdom”, as used in this law, refers to the Hashemite Kingdom of Jordan.

If one of the parties to the arbitration continues with the arbitration proceedings knowing that there has been a violation of a condition in the arbitration agreement or a provision of this law that may be agreed upon to be violated, and does not object to this violation within the agreed time, or within a reasonable time in the absence of an agreement, this shall be considered as a waiver of the party’s right to object.

No court may intervene in matters governed by this law except in the cases specified therein, without prejudice to the right of the Arbitration Panel to request assistance from the Competent Court for arbitration proceedings, as deemed appropriate by the Arbitration Panel, for the proper conduct of the arbitration, such as summoning a witness or expert, ordering the production or inspection of a document or copy thereof, or otherwise.

a. The arbitration agreement is an agreement by the parties, whether legal or natural persons with legal capacity to contract, to refer all or some of the disputes that have arisen or may arise between them regarding a specific legal relationship, contractual or non-contractual, to arbitration.

b. Arbitration is not permitted in matters where conciliation is not allowed.

a. The arbitration agreement must be in writing, otherwise, it is void. An arbitration agreement is considered to be in writing if it is contained in a document signed by the parties, or in the form of letters, electronic communications, or other forms of written communication that are confirmed received and which serve as a record of the agreement.

b. A reference or referral in the original contract between the parties to another document contained an arbitration clause is considered as an agreement in writing unless the parties expressly exclude it.

c. If arbitration is agreed upon while a dispute is being considered by a court, the court must decide to refer the dispute to arbitration, and this decision is considered as a written arbitration agreement.

d. Notwithstanding any other legislation and without prejudice to legal situations prior to the enactment of this amended law, any prior arbitration agreement is void in the following cases.

1. Consumer contracts prepared on pre-printed forms.

2. Employment contracts.

An arbitration agreement may precede the dispute, whether it is independent or contained in a specific contract regarding all or some of the disputes that may arise between the parties. It is also permissible for the arbitration agreement to be made after the dispute has arisen, even if legal action has already been initiated, provided that the subject of the dispute referred to arbitration is precisely defined, otherwise, the agreement is void.

The arbitration agreement does not prevent any party from requesting from the judge of urgent matters, before the commencement of arbitration proceedings or during their progress, to take any temporary or precautionary measure in accordance with the provisions stipulated in the Civil Procedures Law, and these measures may be reversed in the same manner.

Jordanian legal principles stipulate that a contract, inherently including any arbitration clauses it may contain, binds not only the original parties but also their legal successors. This extension to successors or assignees underscores the continuity of contractual obligations beyond the original signatories. Legal commentary further elaborates on situations where arbitration agreements could extend to third parties. A notable example provided involves the incorporation of an arbitration clause within the memorandum of association of a company. Such a clause, intended to govern disputes between the company and its shareholders, by virtue of the memorandum’s application, extends to all current and future shareholders, irrespective of their direct involvement in the memorandum’s signing. This example illustrates how arbitration agreements can transcend the immediate circle of signatories, encompassing a broader spectrum of individuals connected to the contractual relationship.

In summary, while the default position under Jordanian law emphasizes the consensual nature of arbitration agreements, there are recognized pathways through which third parties may become bound by or capable of leveraging such agreements. This nuanced approach reflects an understanding of the complexities inherent in contractual relationships and the evolving dynamics of commercial and legal interactions.

a. The parties to the arbitration may agree on the selection of arbitrators and the method of their selection and date; if they do not agree, the following procedures shall be followed:

1. If the Arbitration Panel consists of a single arbitrator, the Competent Judge shall appoint them at the request of one of the parties.

2. If the Arbitration Panel is composed of three arbitrators, each party appoints one arbitrator, and the appointed arbitrators agree on the third arbitrator. If one of the parties does not appoint an arbitrator within fifteen days of receiving a request from the other party, or if the appointed arbitrators do not agree on the third arbitrator within fifteen days of the appointment of the last of them, the Competent Judge shall appoint the third arbitrator at the request of any of the parties. The third arbitrator, whether appointed by the two appointed arbitrators or by the Competent Judge, shall preside the Arbitration Panel.

b. If there are three or more parties to the arbitration, they may agree on the number of arbitrators, the method of their appointment, and the method of determining the president of the Arbitration Panel among them; if they do not agree, the following procedures shall be followed:

1. If they agree on the number of arbitrators and the method of their appointment, without agreeing on the method of determining the president of the Arbitration Panel from among them, the president shall be determined by the consensus of the members of the Arbitration Panel; if it is not possible to determine the president in this case, the Competent Judge shall appoint them at the request of the parties to the arbitration.

2. If they agree on the number of arbitrators, without agreeing on their method of appointment, the Competent Judge shall appoint them in the agreed number and determine the president from among them.

3. If the parties to the arbitration do not agree on the number of arbitration and their method of appointment, the number of arbitrators shall be three, appointed by the Competent Judge, who shall also decide the president from among them.

c. If one of the parties violates the procedures that they have agreed upon for selecting the arbitrators, or if they did not agree on how to carry out those procedures, or if the appointed arbitrators do not agree on a matter that must be agreed upon, or if the third party fails to perform what was entrusted to it in this regard, the Competent Judge, at the request of any of the parties, shall carry out the required procedure or task, after hearing the other party’s statements.

d. The Competent Judge shall consider the conditions required by this law, and those agreed upon by the parties in choosing the arbitrator and shall issue his decision to choose the arbitrator promptly after hearing the statements of the other party.

a. A challenge request must be submitted in writing to the Arbitration Panel, stating the reasons for the challenge, along with evidence, within fifteen days from the date the challenging party became aware of the constitution of the Arbitration Panel or of the circumstances justifying the challenge.

b. The Competent Court must examine the challenge request meticulously unless it decides otherwise and must issue a decision within thirty days from the date of its receipt at the court clerk’s office. The court’s decision is final and shall not be subject to appeal.

c. A challenge request will not be accepted from someone who has already submitted a request to challenge the same arbitrator in the same arbitration for the same reason.

d. Submitting a challenge request does not suspend the arbitration proceedings. If the challenge is successful, any arbitration proceedings, including the final arbitration award in which the challenged arbitrator participated, are considered null and void, however, the new Arbitration Panel may adopt any of the previous proceedings, provided that the appointment of the president of the Arbitration Panel, who participated in the selection of the challenge of the challenged arbitrator, remains valid.

If an arbitrator’s mandate ends due to a decision to challenge or remove them, their resignation, death, incapacity, or any other reason, a substitute must be appointed according to the procedures followed for the selection of the original arbitrator.

a. The Arbitration Panel shall decide on objections related to its jurisdiction, including those based on the non-existence, expiration, invalidity, or non-applicability of the arbitration agreement to the subject matter of the dispute.

b. Such objections must be raised no later than the deadline for submitting the response to the statement of defense, in accordance with the provisions of paragraph (b) of Article 29 of this law. The act of appointing an arbitrator or participating in their appointment does not waive the right to raise any of these objections. Any objection that the arbitration agreement does not cover the issues raised by the other party during the dispute must be raised immediately, or the right to do so shall be waived. The Arbitration Panel may, however, accept the objection at a later stage if it finds the delay was due to a legitimate excuse or acceptable reason.

c. The Arbitration Panel may decide on the objections referred to in paragraph (a) of this article before deciding on the merits of the case or combine them with the merits for a joint decision. If the objection is rejected, it can only be raised by filing a lawsuit to annul the arbitration award, in accordance with the provisions for annulment of the arbitration award contained in this law.

a. Subject to the provisions of Article 13 of this law, the parties to the arbitration may agree that the Arbitration Panel, whether on its own initiative or upon the request of either party, may order temporary or precautionary measures deemed necessary given the nature of the dispute and may require the provision of sufficient security to cover the expenses of these measures.

b. If the party ordered to comply fails to do so, the Arbitration Panel may, upon the request of the other party, authorize that party to take the necessary actions to enforce the order, including the right to request the Competent Judge to issue an enforcement order.

a. The parties to the arbitration may agree on the procedures to be followed by the Arbitration Panel and the arrangement of roles for the parties in presenting statements, evidence, and pleadings, and the means of presenting such evidence. The parties may also refer to the rules followed for this purpose by any arbitration center inside or outside the Kingdom.

b. The Arbitration Panel must issue a procedural order specifying the arbitration procedures to be following, including the arbitration schedule and the matters mentioned in the preceding paragraph, taking into account any agreement between the parties on this matter.

a. The claimant must send a written statement of claim, including their name and address, the name and address of the respondent, a description of facts of the case, an identification of the issues in dispute, their claims, and any other matter that the parties have agreed to include in this statement, to the respondent and each of the arbitrators within the agreed timeframe or as determined by the Arbitration Panel.

b. The respondent must send a written response to the statement of claim, addressing the claims made, and may include any counterclaims or defenses related to the subject matter of the dispute or assert a right arising from it for the purpose of offset, even at a later stage of the proceedings, if the Arbitration Panel deems the circumstances justify such.

c. Each party may attach copies of the documents they rely on to their statement of claim or response, as appropriate, and indicate all of some of the documents and evidence they will present. This does not preclude the Arbitration Panel, at any stage of the proceedings, from requesting the original documents or any evidence deemed necessary to resolve the dispute.

Either party to the arbitration may amend or supplement their claims or defenses, or submit additional evidence during the arbitration proceedings, unless the Arbitration Panel decides to reject such amendments or supplements to prevent undue delay or impediment to the resolution of the dispute.

a. The Arbitration Panel shall hold hearings to enable each party to explain the subject matter of the case and present their arguments and evidence. The Arbitration Panel may rely solely on written submissions and documents if the parties agree to this.

b. The parties to the arbitration must be notified of the dates of the hearings and meetings set by the Arbitration Panel in advance, with sufficient notice as determined by the Arbitration Panel.

c. The proceedings of each hearing held by the Arbitration Panel shall be recorded in any form decided on by the Arbitration Panel, with a written transcript provided to each party.

d. Each party to the arbitration may include a written statement from any of their witnesses in their list of evidence, provided it is accompanied by an oath taken before a notary public.

e. If one party submits a sworn written statement from a witness and the other party requests to cross-examine the witness, the written statement shall be excluded if the witness does not appear before the Arbitration Panel to enable cross-examination by the other party.

f. Either party to the arbitration may submit an expert report among their list of evidence, prepared by an expert they have chosen, provided that the expert’s appointment letter, task, and fees paid are disclosed, and the expert is heard before the Arbitration Panel in the same manner as witnesses, if the Arbitration Panel or the other party requests it.

g. Witnesses and experts shall testify after taking an oath in the form determined by the Arbitration Panel.

h. The Arbitration Panel may allow witness testimony using various technological means of communication, including video conferencing or closed circuit. In all cases, the Arbitration Panel may require the witness to appear before it for questioning.

i. The Arbitration Panel, on its own initiative or at the request of one of the parties, may decide to conduct an inspection or expert evaluation in accordance with the provisions of Article 34 of this law.

j. The Arbitration Panel has the authority to decide on all matters related to the experts, including terminating their assignment, challenging them, and accepting or rejecting their expertise in whole or in part.

a. The Arbitration Panel shall apply the legal rules agreed upon by the parties to the dispute. If the parties agree on applying the law of a specific country, the substantive rules of that law shall be followed, excluding the rules of conflict of laws.

b. If the parties do not agree on the legal rules applicable to the dispute, the Arbitration Panel shall apply the substantive rules of the law it deems most closely connected to the dispute.

c. In all cases, the Arbitration Panel must consider the terms of the contract in dispute and take into account the customs prevailing in the type of transaction, the practices followed, and the dealings between the parties.

d. The Arbitration Panel may, if expressly authorized by the parties to the arbitration, decide the dispute according to the principles of equity and fairness without being bound by the provisions of the law.

a. The arbitration award must be written and signed by the arbitrators. In case the Arbitration Panel consists of more than one arbitrator, the signature of the majority of the arbitrators suffices, provided the award documents the reasons for any non-signature by the minority.

b. The arbitration award must be reasoned.

c. The arbitration award must include the names and addresses of the parties, the names, addresses, nationalities, and titles of the arbitrators, a summary of the arbitration agreement, a summary of the facts of the dispute, the claims, statements, defenses, documents of the parties, the dispositive part of the award, and the date and place of issuance. If required, the reasons for the award must also be included. The award must also specify the arbitrators’ fees, arbitration expenses, and how they are to be allocated among the parties.

d. 

1. If the parties to the arbitration and the arbitrators do not agree on the determination of the arbitrators’ fees and their allocation, the fees shall be determined by a decision of the Arbitration Panel, and the parties shall be equally responsible for the payment of these fees, without prejudice to the Arbitration Panel’s right to decide on the expenses and fees and their allocation in the final arbitration award.

2. If any party fails to pay their share of the expenses and fees, the other party shall be requested to pay on their behalf.

3. In all events, any decision by the Arbitration Panel regarding the arbitration fees can be appealed to the Competent Court within fifteen days from the date the parties are notified of it, and the court’s decision in this regard is final.

If, during the arbitration proceedings, an issue arises that falls outside of the jurisdiction of the Arbitration Panel, or if a document submitted is challenged for forgery and criminal proceedings regarding its forgery or any other criminal act are initiated, the Arbitration Panel may continue to hear the subject matter of the dispute if it determines that resolving such issue, the forgery of the document, or the other criminal act is not necessary for resolving the subject matter of the dispute. Otherwise, it shall suspend the proceedings until a final judgment is issued on this matter, which also suspends the period set for issuing the arbitration award.

a. The Arbitration Panel shall correct any pure material errors, whether typographical or arithmetic, in its award either on its own initiative or upon a request from one of the parties. The Arbitration Panel shall make the correction without a hearing within thirty days from the date of the award’s issuance or the submission of the correction request, as applicable.

b. The correction decision shall be issued in writing by the Arbitration Panel and notified to the parties within thirty days from its issuance. If the Arbitration Panel exceeds its authority in making the correction, the decision may be challenged for annulment in a lawsuit subject to the provisions of this law.

c. The correction decision shall be annexed to any annulment lawsuit of the arbitration award if filed or considered before its issuance.

d. In case it is proven impossible for the Arbitration Panel that issued the award to reconvene to consider the request for correction, the matter may be referred to the Competent Court for a decision, unless the parties agree otherwise.

a. Either party to the arbitration may request the Arbitration Panel, even after the arbitration deadline has passed, within thirty days of receiving the arbitration award, to issue an additional award on claims presented during the proceedings that were overlooked by the arbitration award. This request must be notified to the other party before its submission.

b. The Arbitration Panel shall issue its additional award within sixty days from the date of the request’s submission. The Arbitration Panel may extend this period by another thirty days if it sees the necessity.

c. The additional award shall be considered an integral part of the arbitration award it supplements, and its provisions apply to it.

d. The additional award shall be annexed to any annulment lawsuit of the award if filed or considered before its issuance.

a. A lawsuit for the annulment of the arbitration award may only be accepted in the following cases:

1. If there was no valid and written arbitration agreement, or if such an agreement was void or expired.

2. If one of the parties to the arbitration was incapacitated or had limited capacity according to the law governing their capacity at the time the agreement was made.

3. If any party to the arbitration was unable to present their case due to not being properly notified of the appointment of an arbitrator or the arbitration procedures, or for any other reason beyond their control.

4. If the arbitration award excluded the application of the law agreed upon by the parties to govern the subject matter of the dispute.

5. If the Arbitration Panel or the appointment of the arbitrators was constituted in a manner contrary to this law or the agreement between the parties.

6. If the arbitration award decided on matters not covered by the arbitration agreement or exceeded the bounds of this agreement. However, if it is possible to separate the parts of the award related to matters under arbitration from those not covered, the annulment applies only to the latter parts.

7. If the Arbitration Panel did not observe the conditions required in the award in a way that affected its content, or if the award was based on invalid arbitration procedures that affected it.

b. The Cassation Court, reviewing the annulment lawsuit on its own initiative, shall annul the arbitration award if it contains anything contrary to the public order in the Kingdom or if it finds that the subject of the dispute is not arbitrable.