An arbitration clause contained in a memorandum of understanding entered into between a consortium of local authorities and an individual member municipality, which refers to arbitrators disputes relating to the interpretation of the instrument and the services provided for therein, does not extend to the relationship between the municipality and a third-party undertaking engaged by the consortium to perform the material execution of the service, where such undertaking is not expressly contemplated among the persons to whom the clause applies.
An arbitration clause conferring upon arbitral jurisdiction disputes connected with the interpretation of a contractual instrument or the activities provided for therein does not include, in the absence of express provision, disputes relating to the mere performance of the contractual relationship and the fulfilment of the pecuniary obligations arising therefrom.
