Cross-border and arbitration
In international contracts, the governing law, the dispute resolution forum and the enforceability of an award are fundamental questions. A dispute between companies in different countries may raise issues of jurisdiction, evidence and enforcement as well as contract. Ghazaal Majdzadeh Legal Practice advises and acts on international contracts, cross-border commercial disputes and arbitration, from drafting the dispute resolution clause to the recognition and enforcement of awards.
Services
Drafting dispute resolution clauses, including the seat, rules, governing law and language.
Obligations under sale of goods, carriage and payment contracts, and cross-border performance.
Assessing the claim, setting the case strategy, marshalling the evidence and running the proceedings.
Preparing and reviewing written submissions, documents and legal authorities.
Assessing whether an award can be recognised and enforced under the applicable law and treaties.
Coordinating with foreign counsel where a matter spans more than one legal system.
Arbitration can be well suited to many international commercial disputes, but the choice should reflect the cost of proceedings, the nature of the dispute, where the assets are and whether an award can be enforced. An arbitration clause alone is not enough: what matters most is how well it is drafted and how well it fits the transaction.
The path of a case
The contract, seat, rules and governing law.
Claim, evidence and costs assessed, and the route chosen.
Submissions, evidence and hearings, coordinated with foreign counsel.
Recognition and enforcement where the assets are.
Arbitration rests on a valid agreement between the parties and is heard by an arbitrator or tribunal, whereas a court’s jurisdiction comes from the law. Arbitration may allow the parties to choose the arbitrators, the seat and the procedural rules, but cost, duration and enforceability must be assessed case by case.
Yes. The parties can agree to refer a dispute to arbitration after it arises, provided the subject matter is arbitrable and the agreement is legally valid. That agreement should define the scope of the dispute, how the arbitrators are appointed, the seat and the rules.
A refusal does not necessarily stop the arbitration. Depending on the governing law and the chosen rules, an appointing authority or the competent court may be able to step in and make the appointment.
Where the legal conditions are met, recognition and enforcement of a foreign award can be sought. The validity of the arbitration agreement, respect for each party’s right to be heard, the arbitrability of the subject matter and any legal bars to enforcement must all be examined.
The law governing the merits sets the rules by which the contractual rights and obligations are judged. The seat usually determines the law governing the arbitral procedure and which courts have a supervisory role. The two are not necessarily the same.
Not necessarily, provided the legal requirements and the rules on notice and the right to be heard have been respected. The tribunal must still examine the claims and evidence; the other side’s absence does not mean the claim is accepted.
Where there is urgency and the required conditions are met, interim or protective measures may be sought from the tribunal or a competent court. Where to apply, what can be ordered and whether it can be enforced depend on the arbitration rules, the law of the seat and the facts of the case.
The choice between arbitration and court in international commercial contracts should be made before signing, weighing enforcement, confidentiality, cost and legal limits.
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This page is general information, not legal advice. The answer in any particular matter depends on its own documents and circumstances.