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Arbitration

Must an arbitration agreement be in writing in Israel?

Yes. Section 1 of the Arbitration Law 5728-1968 defines an arbitration agreement as a written agreement to refer to arbitration a dispute that has arisen or may arise. A purely oral agreement to arbitrate is not an arbitration agreement under the statute and cannot be enforced through it. The writing requirement is interpreted broadly: a clause inside a signed contract, an exchange of letters or emails, or a document incorporating arbitration terms by reference can all satisfy it. The parties' signatures are not strictly required as long as the written agreement to arbitrate is clear.

The writing requirement sits at the foundation of Israeli arbitration. Because arbitration removes a dispute from the ordinary courts, the law insists on documentary proof that both sides genuinely chose that route. Section 1 frames the agreement as written, and the courts have read this flexibly rather than as a demand for a formal signed deed. What matters is that the intention to arbitrate appears in writing in a way that can be proved. A standalone arbitration clause within a commercial contract is the most common form, but courts have accepted an exchange of correspondence, terms incorporated by reference to another document, and modern electronic communications. The absence of a signature is not fatal where the written record otherwise establishes the parties' consent to arbitrate.

For a foreign party contracting with an Israeli counterpart, the practical lesson is to put the arbitration commitment in clear written terms at the outset rather than relying on understandings reached in conversation. A well-drafted clause should name the governing law, the seat, the language, the number of arbitrators, and the appointing mechanism, all of which reduce the risk of a later fight over whether a valid agreement exists. Where a dispute arises and only an oral understanding exists, a party usually cannot compel arbitration and may be forced into court instead. Investing in a precise written arbitration clause is the simplest way to make the agreement enforceable and to avoid jurisdictional argument before the merits are even reached.

⚖ In Practice
  • Governing law: Section 1, Arbitration Law 5728-1968 (definition of an arbitration agreement)
  • Competent authority: the District Court (Beit Mishpat Mehozi) supervises and enforces arbitration agreements and awards
  • Form accepted: a clause in a signed contract, an exchange of letters or emails, or terms incorporated by reference
  • Signatures: not strictly required where the written record clearly shows consent to arbitrate
  • Drafting tip: specify governing law, seat, language, number of arbitrators, and the appointment mechanism to prevent later disputes

From the full guide: Drafting an Arbitration Clause in Israel

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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