Contracts have a clause stating the law of the country that will govern the contract. This is called the applicable law clause or governing law clause. In addition, the contract will have a jurisdiction clause stating the court of a city or a country that will have the jurisdiction to take up a dispute arising from the contract. The jurisdiction clause may give exclusive jurisdiction to a court or provide for alternate jurisdictions. Where the jurisdiction is not exclusive, disputes arise as to the court which has jurisdiction over a dispute. In addition, the contract may provide for arbitration stating the law that will apply to the arbitration and the seat of arbitration. This could lead to a situation where arbitration is to take place in a country with the substantive law of the contract of another country and the arbitration law of yet another country. This poses challenging and interesting questions on contracts, arbitration and international law. The chapter reviews the exposition of the theme by the courts.

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Applicable Law, Jurisdiction and Arbitration

  • Akhileshwar Pathak

摘要

Contracts have a clause stating the law of the country that will govern the contract. This is called the applicable law clause or governing law clause. In addition, the contract will have a jurisdiction clause stating the court of a city or a country that will have the jurisdiction to take up a dispute arising from the contract. The jurisdiction clause may give exclusive jurisdiction to a court or provide for alternate jurisdictions. Where the jurisdiction is not exclusive, disputes arise as to the court which has jurisdiction over a dispute. In addition, the contract may provide for arbitration stating the law that will apply to the arbitration and the seat of arbitration. This could lead to a situation where arbitration is to take place in a country with the substantive law of the contract of another country and the arbitration law of yet another country. This poses challenging and interesting questions on contracts, arbitration and international law. The chapter reviews the exposition of the theme by the courts.