Gift Importers Ltd. has a contract with a Philippine government exporting agency for the purchase of numerous handmade artifacts. Since neither party was comfortable having the courts of the other party's country adjudicate any disputes between them, the contract contains a clause which identifies the procedure by which a third party acceptable to both would settle any disputes. The contract identifies the UNCITRAL rules as being the procedure to be used in the arbitration. Holtz may choose to follow that or to follow the relevant law of the country in which the contract was formed, that is, the country of the party accepting the contract.

Question

Quizplus · Accepted Answer

The contract specifies that disputes will be settled according to the UNCITRAL rules, which means both parties have agreed to follow an international arbitration procedure rather than defaulting to the laws of the country where the contract was formed or any other national legal system.