Definition of Binding Opinion:
There are times when parties to an agreement have differences of opinions on a certain issue relating to the agreement, for example, regarding the interpretation of a vague provision or any changes in the performance of the agreement with respect to the emergence of any new circumstances. Materially, on this phase, a dispute has not raised, but to avoid any increasingly enlarged problems, the parties may ask for an opinion of a third party that they consider being neutral and expert on the subject matter in order to avoid any other interpretation.
Based on the above description, BAPMI's Binding Opinion refers to an opinion given by BAPMI upon request of relevant parties regarding the interpretation of a vague provision of an agreement in order to eliminate the parties' differences of interpretation, which could open a further dispute. BAPMI's Binding Opinion is signed by BAPMI's Management. In this case, the Management may establish a team of inspectors and formulators consisting of competent people from BAPMI's Management and Permanent Arbitrators.
As the name implies, the opinion is final and binding on the parties. Any action contrary to the Binding Opinion is considered a violation of the agreement.
The reason for choosing BAPMI's Binding Opinion:
There are several reasons why parties to an agreement choose BAPMI's Binding Opinion to resolve differences of opinion they have:
- the parties do not want the differences of opinion arising to develop into a more serious dispute;
- the parties wish to retain the agreement;
- the parties seek for the most correct interpretation of the vague provision and it is final and binding interpretation;
- the parties want to get a guarantee that the person they are requested to give a Binding Opinion really understands the Capital Market sector and issues in dispute;
- the parties want to resolve the differences of opinion in an easier, faster and more efficient manner;
- the parties want to resolve the differences of opinion through a forum that is closed to the public.