1 Incorporation and Arbitration

The concept of incorporation of terms into a contract is vital as it provides an undeniably handy shortcut for the parties involved in commercial transactions. It provides convenience as it removes the need to spend more time and money than is necessary. Thus, the concept, in general, is highly appealing to traders. As a result, a lot of commercial contracts are being entered into by the incorporation of terms, which are contained in a separate document that the parties are referring to. The implementation of the concept is commonly seen in the form of the incorporation of standard terms and conditions of one of the parties and of provisions of specific trading communities.1 Evidently, this convenience minimizes the need for time and money to be spent on negotiations. In other words, incorporation facilitates the emergence of a new contractual framework made on the standard terms of one of the parties, terms set out by trade associations, or even the previous dealings of the parties, without the need for drafting a contractual document from scratch.