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'Must The Definition of The International Character of A Given Arbitration Be Sought in
'Must The Definition of The International Character of A Given Arbitration Be Sought in
5. **Suppletive Nature of Lex Arbitri**: Provisions of the lex arbitri are often
suppletive, meaning that they serve as a default framework that the parties or
arbitrators can amend or derogate from. This flexibility allows parties to organize
their arbitration as they see fit.
In summary, the international character of arbitration and the determination of the law
applicable to the merits of the dispute are primarily governed by the lex arbitri, which
includes principles of party autonomy and allows parties and arbitrators to choose and
apply the applicable law within the framework of the lex arbitri and any institutional
rules agreed upon by the parties. The law of the contract is relevant but is subordinate
to the lex arbitri in international arbitration.
2. the arbitrators verify the international character of the contract before agreeing to
apply the choice of law made by the parties?
Ans: In international commercial arbitration, the arbitrators verify the international
character of the contract before agreeing to apply the choice of law made by the
parties. This verification is done to ensure that the contract and its related dispute have
the necessary international aspects, which would justify the use of international
commercial arbitration. Once the international character is established, the arbitrators
proceed to apply the choice of law made by the parties.
The basis for this process is the intention of the parties, which is often declared in the
contract or arbitration agreement. The UNCITRAL Model Law on International
Commercial Arbitration and other international conventions provide for the arbitral
tribunal to decide the dispute in accordance with the rules of law chosen by the parties
for the substance of the dispute. The arbitrators are required to give effect to the
parties' intentions.
The ways in which the arbitrators become aware of the parties' intention can include:
1. Choice of Law Clause in the Contract:The contract may contain a clause where
the parties have designated the applicable law. This is the most common way to
express their intention.
2. Binding Nature of Party Autonomy: Once the parties have chosen the law that is to
govern their contract, arbitrators are generally bound to apply this chosen law. This
principle reflects the autonomy and freedom of the parties in their contractual
relationships.
3. Implied Choice of Law: In some cases, the parties may not explicitly state their
choice of law in the contract. In such situations, arbitrators may have to interpret the
implied intention of the parties, which can be challenging. The arbitrator may need to
consider various factors, such as the nature of the contract, the place of performance,
and the conduct of the parties.
In conclusion, the risk for the parties in choosing a specific State's law at a fixed date
depends on the clarity of their intention, the presence of implied choices, the
application of amiable composition, and the need to align the outcome with
international public policy. While party autonomy is a fundamental principle, it must
be exercised with care and precision to avoid potential pitfalls in international
commercial arbitration.
4. Is there a difference between the selection of the law applicable to a contract and the
law applicable to a dispute?