Which Law Governs The Arbitration Agreement

Since the parties often do not agree on the law governing their arbitration agreements, courts apply different legal choice rules to find the law applicable to the agreement and several options could be considered – that is, the law governing the underlying contract, the right of headquarters, the right to arbitration most closely related to internationally recognized arbitration principles and rules, and a principle of validation that makes the arbitration agreement effective. This exercise is tedious and costly and therefore has a direct impact on the effectiveness of arbitration. Under English law, an arbitration agreement can be directly challenged on public policy grounds [6]. The question arises as to whether or not the arbitration agreement may or may not exist independently of the unsigned contract. The general principle set out in S.7 of the 1996 Arbitration Act is that an arbitration agreement that is part of another agreement is not considered invalid because that other agreement is invalid. 1. The material validity of the arbitration agreement without the choice of law; The parties may wonder why the existing legislation of a compromise clause is important? – Can you think that this will be the same as the law in the underlying treaty? In an international treaty, it is not uncommon for the existing legislation of the underlying contract to differ from the law of the place chosen as the seat of arbitration. A common example is where the parties to an international treaty have decided, in accordance with English law, to resolve disputes by the Paris-based ICC Arbitration Tribunal. On the basis of these provisions, it was found that the parties made an explicit choice of English law to regulate the arbitration agreement. This conclusion was confirmed by the compromise clause itself, which provided in Article 14, paragraph 3, that “the arbitrator applies the provisions of the agreement.” The Tribunal interpreted the issue in such a way that the arbitrator was required to apply all the provisions, including the English regulatory clause, not only to material disputes, but also to jurisdictional issues.

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