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    Parties To Arbitration Agreement

    Monday 14th December 2020

    Outside the temporal scope of the Rome I Regulation,[50] the choice of applicable legislation will determine whether the determination of the applicable law requires a characterization that goes beyond the conclusion that the relationship between the parties and the institution is a service-providing contract. [51] The few authorities dealing with the issue of the law of the institution`s contracts agree that the law of the institution`s headquarters should apply, that the provisions of the Rome I Regulation (or its predecessor, the Rome Convention) or the legislative provisions of a national law are applicable. [52] The above arguments are specifically designed for jurisdiction clauses and do not apply to the contract between the parties and the Court of Arbitration. This contract is nothing more than a service contract: a contract that is primarily a matter of material (contractual) law and which has only an indirect impact on the arbitration procedure. [46] Thus, there is nothing to prevent the application of the Rome I regulation to the treaty of the institution. Moreover, it found that the choice of English law as lex contractus was not sufficient to “establish the common will of the parties to submit arbitration clauses to English law” and to abstain from the material rules of international arbitration applicable to the headquarters of arbitration [paragraph 27]. The Paris Court of Appeal thus gave full force to the agreement of the parties on the seat of arbitration. In July 2001, Al-Homaizi Foodstuff Co WWL (AHFC), a Kuwaiti company, and Kabab-Ji, a Lebanese company, entered into a franchise development agreement (FDA). Within the FDA, Kabab-Ji has licensed its know-how through its restaurant chain to AHFC, while AHFC will develop the Kabab-Ji brand in Kuwait. The AHFC was then restructured, which led to the creation of a holding company Kout Food Group (KFG). Kabab-Ji has accepted the creation of KFG, provided it does not affect the “conditions of the agreements already signed” with the AHFC.

    It is often easier to impose arbitration awards in a foreign country than court decisions.


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