Gafta is an international association that coordinates global grain trading. In addition, the association deals with the arbitration of international trade. Gafta unites more than 1500 companies in 89 countries of the world. The primary service of Gafta is the drafting of standard pro forma grain trade contracts. This article explains the benefits of these contracts and the main stages of arbitration.
The Advantages Of Standard Grain Trade Contracts
Gafta has a wide range of standard contract forms for different transport methods and trading conditions. Hence, the first advantage is that both parties can agree only on the main (price, quality, timing). All other details are in the specific Gafta contracts. This condition is very convenient. Not surprisingly, 80% of the world’s grain trade is based on standard grain trade contracts.
Another advantage is the convenient timing of application, namely one year. The date of the bill of lading, the discharge date, or the conclusion of the delivery period may all serve as points of reference. The claim must be lodged within one year of the date of notice of a quality issue. One can get up to a six-year extension in the event of a particular request.
It is also worth saying about the advantageous cost of Gafta solutions. The average price is £14,654.65. To an inexperienced person, the amount may seem very large. However, everything is relative. A similar procedure in the London Court of International Arbitration will cost several times more.
Аdjudicating A Dispute: The Main Stages
Gafta has a specialized arbitration body that deals with disputes arising during the execution of contracts. All disputes that the parties submit to arbitration go through similar stages.
It’s common practice to employ the rules Gafta 125 and Gafta 126 in uncomplicated instances.
Firstly, an arbitrator must be appointed and a claim filed. Once the deposit has been made, the complaint preparation process may begin in 21 days. Detailed explanations may be given in an extra round if required. All communication is kept on file by the association’s secretary. There is no direct interaction between the arbitrators and the parties at any hearing.
It is important to note that the tribunal considers the Gafta arbitration action. The arbitrators will be the judges during the process. They do not act as counsel for the parties. Experienced lawyers are needed to prepare cases and assess the chances of success. You’ll need professionals to properly build a defense or prosecution line, avoid the traps and achieve your goals.
What To Do After The Award
When a company wins, it doesn’t mean the process is over. Wherever the corporation is registered, the judgment will be recognized and executed. In other words, enforcement will take place in the official location of the debtor’s assets. What is the enforcement process all about? A certified judgment and contract must first be filed with the local court to ensure that the formal procedures have been met. Then, the executor gets the award, and the debtor is charged a certain amount of money.