- Arbitral Award
- China International Economic and Trade Arbitration Commission
SALES CONTRACT - BETWEEN A CHINESE PARTY AND A KOREAN PARTY - UNIDROIT PRINCIPLES QUALIFIED BY THE TRIBUNAL AS USAGES APPLICABLE TO THE EXTENT THAT THE ISSUES AT STAKE ARE NOT COVERED BY THE APPLICABLE DOMESTIC LAW (CHINESE LAW)
A dispute relating to a contract for international sale of goods between a Chinese party and a Korean party was submitted to arbitration. In the course of proceedings, Claimant invoked Article 7.4.2 UNIDROIT Principles (2004) to claim full compensation. Absent the parties’ choice of law, the Arbitral Tribunal decided that Chinese law should apply under the closest connection rule. Further, the Tribunal qualified the UNIDROIT Principles as international usages and ruled that usages should apply only in the absence of relevant provisions in the applicable domestic law. Since in the case at hand the issues at stake were expressly settled in the applicable law, the Arbitral Tribunal decided that the UNDROIT Principles were not applicable.