- Arbitral Award
- International Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation
SALES CONTRACT - BETWEEN RUSSIAN SELLER AND HUNGARIAN BUYER - PARTIES CHOOSE RUSSIAN LAW AS THE LAW GOVERNING THEIR CONTRACT - HUNGARIAN BUYER INVOKED ALSO APPLICATION OF THE UNIDROIT PRINCIPLES AS USAGE OF INTERNATIONAL TRADE - RUSSIAN SELLER OBJECTED - ARBITRATION COURT DECIDED NOT TO APPLY THE UNIDROIT PRINCIPLES
Seller (a Russian company) claimed from Buyer (a Hungarian company) compensation for lost profit as a consequence of a breach of the contract for the sale of goods.
The parties had agreed that the contract was governed by Russian law.
In its arguments the Respondent invoked also the application of the UNIDROIT Principles of International Commercial Contracts which it argued were applicable as they reflected recognized international standards and were becoming a usage of international trade. However the Claimant did not agree to the application of the UNIDROIT Principles in the case at hand.
The Arbitration Court decided not to apply the UNIDROIT Principles in the case at hand as the contract did not provide for their application and the Claimant expressly objected to their application in the course of the arbitral proceedings.