problem of determining the governing law in the absence of the parties' agreement would directly apply the law most closely connected to the contract. It is to be hoped that the next international project on arbitration will adopt this straightforward approach to choice of law by arbitrators. Canadian legislations have led the way in this respect.
The lesson to be learned from the discussion in this chapter seems to be that parties to international contracts should endeavor to make an express choice of law to govern their contract, preferably national law. Such a choice simplifies matters a great deal: the principle of party autonomy makes such choice binding on arbitrators, subject of course to mandatory provisions of relevant laws.
As we have seen, arbitral practice regarding the determination of an applicable law in the absence of the parties' choice is still in a state of flux, with different arbitrators adopting different approaches. While the method of applying the law most closely connected to the transaction seems to be the emerging common practice in this regard, parties are better advised to put this matter beyond doubt by stipulating their own choice of law.
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Publication information: Book title: Choice of Law in International Commercial Arbitration. Contributors: Okezie Chukwumerije - Author. Publisher: Quorum Books. Place of publication: Westport, CT. Publication year: 1994. Page number: 134.
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