Legal encyclopedia. Letter E

EUROPEAN CONVENTION ON FOREIGN TRADE ARBITRATION

Was adopted on April 21, 1961 in Geneva. The Convention applies to arbitration agreements of individuals and legal entities that have a permanent residence (location) in various states, on the resolution by arbitration of disputes arising in the implementation of foreign trade operations, as well as arbitration processes and decisions based on agreements.

The European Convention provides the parties to the arbitration agreement with broad rights. In particular, the parties have the right to include in the agreement the transfer of disputes for the permission of the permanent arbitration body, for arbitration in a particular case (arbitration ad hoc). In this case, the parties have the right to appoint arbitrators, establish

The location of the arbitral tribunal, establish the rules of procedure to be followed by the arbitrators.

If the parties did not use these rights, then they are transferred to the chairman of the chamber of commerce of the country or to a special committee.

The Chairperson or the Ad Hoc Committee may, depending on the nature of the request:

1) appoint a sole arbitrator, if agreed by the parties, the arbitrator-chairman, the super-arbitrator or the third arbitrator;

2) to replace the arbitrator (arbitrators);

3) determine the location of the arbitral tribunal, whereby by the decision of the arbitrators another arbitration seat may be elected;

4) establish, either directly or by reference to the Rules of the Permanent Arbitration Body, the rules of procedure to be followed by the arbitrators.

In accordance with Art. 7 of the Convention, the parties may, at their own discretion, establish by common consent the law to be applied by the arbitrators in resolving the dispute on the merits.

The arbitrators decide as "friendly intermediaries" if there is an agreement between the parties and if the applicable law allows this.

The Convention provides for cases

Cancellation of the decision of the arbitrators.

So, the decision can be canceled if:

1) the parties to the arbitration agreement were incompetent or this agreement was invalid under the law to which the parties subordinated it, and in the absence of such indication - by the law of the country where the decision was made;

2) the party requesting the cancellation of the decision was not duly notified of the appointment of the arbitrator or of the arbitration proceedings or for other reasons could not submit their explanations;

3) the decision was made on a dispute that is not provided for or is not subject to the terms of the arbitration agreement or arbitration clause in the contract, or contains decisions on issues beyond the scope of the arbitration agreement or arbitration clause;

4) the composition of the arbitral panel or the arbitration procedure did not comply with the agreement of the parties.