Arbitration - Coursework Example

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Arbitration The arbitration clause in a contract which is a common feature in all international contracts is an agreement separate from the underlying contract and hence known as the “bedrock” of international arbitration.1 The arbitration agreement must be carefully drafted so as to provide for the rights of the parties and their duties to submit to arbitration proceedings and competence of arbitral tribunal to resolve disputes…
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Download file to see previous pages and Malaysia and hence the contract between them is an international contract attracting the law of international commercial arbitration. The contract envisages supply of toilet flushes by the Malaysian company to the London plumbing firm. It is clear that their contract has a clause for arbitration to be resorted to in the event of disagreement or dispute between them. On the one hand, George Ltd of London wishes to terminate the contract and Cheap Stock Corp of Malaysia maintains that George Ltd’s demand for termination is a violation of the contractual terms, on the other. This constitutes a dispute between them warranting arbitration as provided by the arbitration clause of the underlying contract. The arbitration agreement if valid will enable the arbitrators to decide whether the London firm is entitled to prematurely terminate the contract entered into with the Malaysian company by examining the terms of the underlying contract. ...
The seat or legal place of the arbitration shall be [city and/or country]. The language to be used in the arbitral proceedings shall be [language]. The governing law of the contract shall be the substantive law of [jurisdiction].”3 If the parties have not chosen any institutional arbitration, UNCITRAL Arbitration rules provides for Ad hoc arbitration according to which the arbitration clause shall be as follows. Ad hoc arbitration under UNCITRAL Arbitration Rules “All and any disputes or differences arising out of or in connection with this Agreement, or the breach, termination, or invalidity thereof, shall be referred to and finally resolved by arbitration in accordance with the UNCITRAL Arbitration Rules [as at present in force/as in force at the time when arbitration proceedings are commenced] (‘the UNCITRAL Rules’).” 4 The adhoc arbitration clause is more inclusive in that it includes even differences apart from disputes relating to “agreement or breach, termination or invalidity thereof.” 5 Since the parties do not appear to have chosen any institutional arbitration, Adhoc arbitration as per the UNCITRAL rules may be applied. The relevant rules in this connection stipulate “The Notice of Arbitration shall be served in accordance with Article 3 of the UNCITRAL Rules”. 6 Further, the appointment of arbitrators and their numbers (one or three) and the authority (institution) by whom to be appointed are also to be governed by the UNCITRAL Rules. The place and the seat of the arbitration such as city and/or country and language of arbitration will also be named by the authority. Validity of the arbitration agreement in the contract The contract in question contains the term ‘any disagreement or dispute between the parties ...Download file to see next pagesRead More
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