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CHAPTER 2 The law governing the arbitration agreement: a transnational solution?

Transnational Construction Arbitration

Page 5 CHAPTER 2 The law governing the arbitration agreement: a transnational solution? The law governing the arbitration agreement: a transnational solution? Renato Nazzini 1 Introduction 2.1 Parties rarely choose the law applicable to the arbitration agreement. This frequently gives rise to complexities. The obvious solution, but one that, for some reason, is not yet prevalent, is for arbitration clauses to make an express choice of the law applicable to the clause itself, rather than to the matrix contract of which the clause is an element. It is impossible not to endorse this solution. If the parties choose the law applicable to the arbitration agreement, in all but rare cases such a choice will be given effect by arbitrators and courts. The determination of the law applicable to the arbitration agreement will not be problematic. And this is the end of the matter.

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