A critical analysis of the international commercial contract law and the arbitration system.

A Critical Analysis of International Contract Law and Arbitration System Introduction Arbitration is fast taking its course in the commercial setting, worldwide. In this modern day and age, everything not only has to be efficient but prompt as well. Hence, in order for international business institutions to maintain consistency and resoluteness, they tend to prefer passing over formalities in the law court and thereon, and simply resolve disputes out of court through an arbitrator. In fact, almost 90% of large international transactions include arbitration clauses in their contracts.[ADDIN Mendeley Citation{0fe8aed3-5f06-4189-8ef1-c7b810ffa53f} CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "DOI" : "10.2307/1373012", "author" : [ { "family" : "Guzman", "given" : "Andrew T." } ], "container-title" : "Duke Law Journal", "id" : "ITEM-1", "issue" : "5", "issued" : { "date-parts" : [ [ "2000", "3" ] ] }, "page" : "1279", "title" : "Arbitrator Liability: Reconciling Arbitration and Mandatory Rules", "type" : "article-journal", "volume" : "49" }, "uris" : [ "/documents/?uuid=0fe8aed3-5f06-4189-8ef1-c7b810ffa53f" ] } ], "mendeley" : { "manualFormatting" : "Andrew T. Guzman, \u201cArbitrator Liability: Reconciling Arbitration and Mandatory Rules\u201d (2000) 49(5) Duke Law Journal 1279-1334 </stable/1373012>, 1281.", "previouslyFormattedCitation" : "Andrew T. Guzman, \u201cArbitrator Liability: Reconciling Arbitration and Mandatory Rules\u201d (2000) 49(5) <i>Duke Law Journal</i> 1279 \u0026#60;/stable/1373012?origin=crossref\u0026#62;." }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" } Andrew T. Guzman, "Arbitrator Liability: Reconciling Arbitration and Mandatory Rules" (2000) 49(5) Duke Law Journal 1279-1334 </stable/1373012>, 1281.] The process of Arbitration involves the use of one - or perhaps more - arbitrator(s) in order to settle a business dispute among transnational parties. Its non-judicial nature makes it a viable option for the parties to procure a simpler, effortless means of pursuing a business transaction or contract. Accordingly, disputes are settled in compliance with a prearranged concord. In comparison, having to submit such queries through regular court procedures would pose a longer course of action and therefore, cause further delay in the case`s conclusion not to mention that litigation costs a huge amount of money, too.[The American Society of International Law, International Commercial Arbitration (25 May 2011) /erg/?page=arb.] [Ibid.] Because arbitration is typically out-of-court, its success can be attributed to the willingness of state courts to enforce resolutions. In recognition of the importance of arbitration, many states have created laws that expand the range of issues which are arbitrable. Despite the advantages presented by arbitration, it must be noted that in many countries, the problem arises when there is unwillingness in one party to recognize the results of the arbitration. The court can annul a resolution on the grounds that the arbitrator is biased or that proper procedures were not followed in the process. This hardly promotes efficient arbitration. Hence, several researchers believe that courts must create provisions for deference as well as mandatory rules that must be followed to ensure the objectivity of the results.[Guzman, above n 1, 1281.] [ADDIN Mendeley Citation{885f8032-2135-40fe-8d66-0f82d31259fd} CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "Park", "given" : "William W." } ], "container-title" : "The American Journal of International Law", "id" : "ITEM-1", "issue" : "4", "issued" : { "date-parts" : [ [ "1999" ] ] }, "page" : "805-823", "title" : "Duty and Discretion in International Arbitration", "type" : "article-journal", "volume" : "93" }, "uris" : [ "/documents/?uuid=885f8032-2135-40fe-8d66-0f82d31259fd" ] } ], "mendeley" : { "previouslyFormattedCitation" : "William W. Park, \u201cDuty and Discretion in International Arbitration\u201d (1999) 93(4) <i>The American Journal of International Law</i> 805-823." }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" } William W. Park, "Duty and Discretion in International Arbitration" (1999) 93(4) The American Journal of International Law 805-823.] [ADDIN Mendeley Citation{b0ffb71d-5a8f-4c1b-bf80-69782797cd05} CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "Benson", "given" : "Bruce L" } ], "container-title" : "Journal of Law, Economics \u0026 Organization", "id" : "ITEM-1", "issue" : "2", "issued" : { "date-parts" : [ [ "1995" ] ] }, "page" : "479-501", "title" : "An Exploration of the Impact of Modern Arbitration Statutes on the Development of Arbitration in the United States", "type" : "article-journal", "volume" : "11" }, "uris" : [ "/documents/?uuid=b0ffb71d-5a8f-4c1b-bf80-69782797cd05" ] } ], "mendeley" : { "previouslyFormattedCitation" : "Bruce L Benson, \u201cAn Exploration of the Impact of Modern Arbitration Statutes on the Development of Arbitration in the United States\u201d (1995) 11(2) <i>Journal of Law, Economics \u0026#38; Organization</i> 479-501." }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json...