Can two Indian parties choose foreign law to govern their arbitration agreement?

Although it has not been expressly ruled by the Supreme Court, a careful review of the judgment suggests that there may not be any prohibition in two Indian parties electing a foreign law as the substantive law of the contract, provided the seat of arbitration is outside India.

Can a contract have 2 governing laws?

The High Court has held that a contract can, where the negotiations are complex, be made in two different jurisdictions. Agreeing a jurisdiction clause in international contracts can be problematic; it can be tempting simply not to include one. …

Can Governing Law and Venue be different?

First, it is important to note that the governing law and venue are distinct. The courts of one jurisdiction can and regularly do apply the law of another jurisdiction. State courts can apply federal law or the law of any other state, and federal courts can apply the law of any state in addition to federal law.

What law governs an international contract?

For international contracts, the U.N. Convention on Contracts for the International Sale of Goods is the default governing law.

Can domestic parties choose foreign seat of arbitration?

The Supreme Court disagreed and held that, as a matter of statutory interpretation of Section 28(1)(a) of the Act, Indian substantive law is only mandatorily applicable to domestic disputes seated in India. That does not preclude the choice of a foreign arbitral seat by two Indian parties.

Can there be two arbitrators?

Number of arbitrators: The Act8 provides that parties are free to determine the number of arbitrators which however, should not be an even number. Failing any determination by the parties, the arbitral tribunal shall consist of a sole arbitrator9.

Can parties agree to jurisdiction?

A jurisdiction agreement is a very important component to all parties to a contract or other formal agreement. You need to include a clause in your contract that states where one or both parties can sue if it becomes necessary to do so.

How do you choose governing law?

Governing Law is determined by jurisdiction, which is any larger area that has its own specific local law set. For clarification, there are 51 jurisdictions within the United States. This is different from a sovereign state, which is generally what we would think of as a country.

How do you choose governing law and jurisdiction?

Can different governing laws apply to different parts of a contract?

The choice can apply to the whole or part of the contract. Where the contract does not set out the governing law the contract will be governed by the law with which it is most closely connected unless the contract is “manifestly more closely connected” with the law of a different country.

What is governing jurisdiction?

Governing Jurisdiction means the jurisdiction whose law governs the internal affairs of an entity.

What is the difference between seat and venue of arbitration?

In general, the “seat” is a place where the court have supervisory and governing powers over the arbitral proceedings. However, the “venue” is a place where the proceedings of arbitration such as hearing of witnesses, experts or the parties or the inspection of goods and properties are concluded.