- Arbitral Award
- Gulf Cooperation Council Commercial Arbitration Centre
INTERNATIONAL CONTRACT - PARTIES' REFERENCE TO CUSTOMS OF INTERNATIONAL TRADE - ARBITRAL TRIBUNAL ENTITLED TO APPLY UNIDROIT PRINCIPLES UNLESS THE PARTIES HAVE MADE AN EXPRESS CHOICE OF LAW
RATE OF INTEREST - ARBITRAL TRIBUNAL APPLYING BANK SHORT-TERM INTEREST RATE AS AN EXPRESSION OF A WORLD WIDE USED BENCHMARK - REFERENCE TO UNIDROIT PRINCIPLES
In a dispute concerning an international contract that did not contain a choice of law clause, the Claimant asked the Arbitral Tribunal to apply the law of the place of execution of the contract.
However, the Arbitral Tribunal concluded that the contract was connected with more than one State and, consequently, the dispute should be resolved “in accordance with the terms of the contract at dispute which the tribunal is bound to apply as the law of the parties, taking into consideration the customs of international trade, pursuant to the provisions of article 12 of the Statute of the Gulf Cooperation Council Commercial Arbitration Centre (GCCCAC) and article 29 of the Procedural Regulation in force before
The Arbitral Tribunal ordered payment of interest at bank short term interest rates as indicated by a world widely used benchmark. The Tribunal did not base its order of interest on any national law; instead, it referred to the UNIDROIT Principles, which the Tribunal held applicable to an international contract unless the parties have made an express choice of law.
(cf. M.H. Bashayreh, The Arbitration Mechanism of the Commercial Arbitration Centre for the States of the Cooperation Council for the Arab States of the Gulf, GCC Commercial Arbitration Centre, 2015, p. 204-5)