International business transactions


Application of National Law or Other Treaty: Art VII



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OUTLINE International Business Transactions
Application of National Law or Other Treaty: Art VII

  • The party requesting recognition and enforcement may base its request on national law or an international treaty other than the NYC.

  • The “more favorable right provision” of Article VII(1) provides that, in the relationship between the NYC and national law, the rules more favorable to enforcement have priority.


Court Measures

  • Proper degree of court intervention

  • Articles II(3) and III of the New York Convention provide the following framework for court measures in connection with international commercial arbitration:

    • At a minimum, courts shall refer the parties to an arbitral agreement to arbitration;

    • At a minimum, courts shall recognize and enforce a foreign arbitral award;

    • At a maximum, court measures must not contradict the court's obligation under the treaty to refer the parties to arbitration. Within this framework there are many possible court measures having a different impact on international arbitration, from obstructive to cooperative. The New York Convention does not regulate these measures. They are regulated:

      • First, by the domestic laws and practice of the courts where they are sought;

      • Second, by the arbitral agreement.


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