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Choice Of Law Provision In Arbitration Agreement

(b) the formal validity of an international arbitration agreement must be determined according to the formal rules of validity of the right of arbitration of the country in which the arbitration is based. “There are a number of principles and policies that we believe warrant as a general rule with respect to the law of the place chosen as the seat of arbitration as the right most closely related to the arbitration agreement which, for lack of choice, will apply by default.” The question of which law governs an arbitration agreement can be important, as this case makes clear. The result determines whether a company has participated in an arbitration agreement. Admittedly, there is some disagreement in the jurisprudence that deals with this subject, but the (complex) hierarchy of reflections is relatively clear: “… that the contract that gave rise to a dispute in this case does not include the choice of the law to govern the contract or arbitration agreement under the contract. Under these conditions, the validity and scope of the arbitration agreement (and, in our view, the rest of the dispute settlement clause that contains that agreement) are governed by the right of the selected arbitration seat, as the law with which the dispute settlement clause is most closely linked. Therefore, we confirm the conclusion of the Court of Appeal, although for different reasons, that the law applicable to the arbitration agreement is English law. He stated that Article 1 had specified that the agreement contained all the terms of the agreement reached, while Article 15 stipulated that the agreement would be governed and interpreted in accordance with the laws of England. The “correct design” of these terms “together” meant that the provisions of Article 14 relating to dispute resolution, like all provisions of the agreement, are governed by English law. The majority decision of the Supreme Court of the United Kingdom, which is discussed in more detail below, makes it clear that, for an arbitration proceeding based in London, the right of the arbitration agreement, without the election of the parties, will be the right of the seat.

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