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Commercial Arbitration$
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Hong-Lin Yu

Print publication date: 2011

Print ISBN-13: 9781845861070

Published to Edinburgh Scholarship Online: September 2015

DOI: 10.3366/edinburgh/9781845861070.001.0001

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Choice of the Proper law

Choice of the Proper law

(p.169) Chapter 9 Choice of the Proper law
Commercial Arbitration

Hong-Lin Yu

Edinburgh University Press

This chapter explains the importance of proper law in arbitration, especially in ensuring a speedy resolution of the dispute. It first considers the importance of proper law from three aspects: the advantages of international commercial arbitration, the expectations of the parties, and the validity of arbitral awards. It then discusses the different types of proper law and how the proper law is determined for arbitration proceedings. It also examines the limitations on the parties' expressed choice of the proper law; the ‘implied choice of law’ test; the ‘closest and most real’ test; the three-step and two-step choice of law rules; application of international law as the proper law of a contract; application of general principles of law in ad hoc arbitration; application of the new lex mercatoria; and application of amiable composition.

Keywords:   proper law, arbitration, contract, international commercial arbitration, arbitral awards, implied choice of law test, closest and most real test, international law, lex mercatoria, amiable composition

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