The Waiver of Arbitration Agreement is a strategic legal document used when parties who previously agreed to resolve disputes through arbitration decide to opt for court litigation or alternative dispute resolution methods instead. This document is particularly relevant in the Malaysian legal context, where it must comply with the Arbitration Act 2005 and the Contracts Act 1950. It's commonly used when parties determine that arbitration may not be the most suitable dispute resolution mechanism for their specific circumstances, whether due to cost considerations, the nature of potential disputes, or the desire for broader appeal rights. The document typically includes detailed provisions about the existing arbitration agreement being waived, the scope of the waiver, and the new dispute resolution mechanism chosen by the parties.
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1. Parties: Identification of all parties involved in the waiver agreement, including their full legal names, registration numbers (if applicable), and registered addresses
2. Background: Context of the original arbitration agreement, including reference to the main agreement containing the arbitration clause and the reasons for waiving it
3. Definitions: Key terms used in the waiver agreement, including references to the Original Agreement, Arbitration Clause, and other relevant terms
4. Waiver Declaration: Express statement of the parties' agreement to waive their rights to arbitration under the original agreement
5. Scope of Waiver: Specific details of what aspects of the arbitration agreement are being waived and any limitations to the waiver
6. Alternative Dispute Resolution: Statement of the agreed alternative method for resolving disputes (typically court litigation)
7. Governing Law and Jurisdiction: Specification of Malaysian law as the governing law and the relevant court jurisdiction
8. Execution: Signature blocks and execution formalities for all parties
1. Partial Waiver Provisions: Used when only specific aspects of the arbitration agreement are being waived while others remain in force
2. Temporary Waiver Provisions: Used when the waiver is intended to be temporary or applies only to specific circumstances
3. Conditions Precedent: Used when the waiver is subject to certain conditions being met before becoming effective
4. Representations and Warranties: Used when parties need to make specific representations about their authority to waive arbitration rights
5. Costs and Fees: Used when there are specific arrangements regarding the costs associated with the waiver or future dispute resolution
1. Schedule 1 - Original Arbitration Agreement: Copy or extract of the original arbitration agreement being waived
2. Schedule 2 - Related Agreements: List of any other agreements affected by this waiver
3. Schedule 3 - Authorized Signatories: List of authorized signatories and their proof of authority (if applicable)
4. Appendix A - Court Jurisdiction Details: Specific details of the court jurisdiction and procedures that will replace arbitration
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