International business transactions



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OUTLINE International Business Transactions
Scope of Application

  • Applies to the recognition and enforcement of foreign arbitral awards

    • See page 725 for foreign v. domestic

  • Following reservations are permitted under Art I

    • The contracting states may limit the scope of the NYC to foreign awards made in the territory of another contracting state, and

    • The application of the NYC may be limited to matters considered commercial under the national law of the State making such declaration

  • Scope of NYC encompasses physical and legal persons, as well as persons of public law

  • Arbitration Agreement

    • Valid agreement is prerequisite for arbitration

    • “In writing” requirement under Art II means that the contract must either be signed by the parties to a dispute or contained in an exchanged of letters or telegrams

    • By broad interpretation of Article II NYC, arbitration agreements may be deemed valid if they have been entered into by the exchange of telexes and facsimiles, through sales or purchase confirmations or by virtue of a reference to general conditions, if contained in a bill of lading, if concluded through an agent or contained in connected contracts, if concluded pursuant to the trade usages or by means of electronic communication.

    • Multi-party arbitration causes problems if one of the parties who joined or wanted to join was not a party to the arbitration agreement.


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