Payment Arbitrability

"Order payment is arbitrable" means that in a sales contract, it is agreed that if the buyer fails to pay for the goods as stipulated, the seller has the right to submit the payment dispute to arbitration, and the arbitral award is binding on both parties. This term is commonly found in contract clauses under settlement methods such as letters of credit, documentary collections, or open account sales, and is especially suitable for transactions where the counterparty's credit status is unclear or in high-risk countries/regions. Use cases include: contract payment clauses, dispute resolution clauses, supplementary agreements, etc. Notes: The arbitration institution, place of arbitration, arbitration rules, and language must be clearly specified; otherwise, the clause may be invalid. Cross-border enforcement of arbitral awards depends on the New York Convention; if the counterparty's country is not a signatory, enforcement is difficult. Compared with litigation, arbitration is more confidential and efficient but more expensive; as opposed to "non-arbitrable," which means certain disputes (such as those involving public policy) cannot be arbitrated. Foreign trade practitioners should ensure that the arbitration clause is consistent with other clauses of the main contract (such as payment time and liquidated damages) to avoid ambiguity.