How is the Applicable Law Determined in International Arbitration?

Question from Dr, How is the Applicable Law Determined in International Arbitration?

Answer from AI:

In international arbitration, determining the applicable law can be a complex process. It involves considering various factors such as the place of arbitration, the domicile of the parties, the place of performance of the contract, and the place of payment.

Key Factors in Determining Applicable Law

1. The Arbitration Agreement: The arbitration agreement itself may specify the law to be applied. If the agreement in this case specifies a particular country’s law, that law would generally be applied.

2. The Place of Arbitration: The place of arbitration often plays a significant role in determining the applicable law. In this case, the agreement provides for arbitration in Durban, South Africa. Therefore, South African law may be relevant.

3. The Domicile of the Parties: The domicile of the parties can also influence the choice of law. Here, both parties are British citizens, but the second party is domiciled in South Africa.

4. The Place of Performance: The place where the contract is to be performed can also be a factor. In this case, the bicycles were to be delivered in Durban, South Africa.

5. The Place of Payment: The place of payment can also influence the choice of law. Here, payment was to be made in China and in US dollars.

Legal Principles and Regulations

The UNCITRAL Model Law on International Commercial Arbitration provides a framework for determining the applicable law in international arbitration. According to Article 28, if the parties have not agreed on the law to be applied, the arbitral tribunal shall apply the law determined by the conflict of laws rules which it considers applicable.

Consulting a Legal Professional

Given the complexity of determining the applicable law in international arbitration, it is advisable to consult with a legal professional who specializes in international arbitration. They can provide personalized advice based on the specific circumstances of the case and the relevant laws and regulations.

Please note that this information is a general guide and does not constitute legal advice. For specific advice, please consult with a legal professional.