UNCITRAL Model Law on International Commercial Arbitration
• Core legal body of the United Nations system in the field of international trade law.
• UNCITRAL’s business is the modernization and harmonization of rules on international business
• The Model Law is designed to assist States in reforming and modernizing their laws on arbitral procedure so as to take into account the particular features and needs of international commercial arbitration
• It covers all stages of the arbitral process from the arbitration agreement
• It reflects worldwide consensus on key aspects of international arbitration practice having been accepted by States of all regions
Difference between the UNCITRAL Model Law on International Commercial Arbitration (1985) and the UNCITRAL Arbitration Rules
• UNCITRAL Model Law provides a pattern that law-makers in national governments can adopt as part of their domestic legislation on arbitration.
• UNCITRAL Arbitration Rules, selected by parties to govern the conduct of an arbitration intended to resolve a dispute or disputes between themselves.
Model Law is directed at States, while the Arbitration Rules are directed at potential (or actual) parties to a dispute.
Article 1
Defines the scope of application.
Provides for a broad definition of the terms “international” and “commercial”
Article 1 (3) (a) defines arbitration as international if “the parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different States
The Model Law does not provide a strict definition of the term “commercial”. The footnote to article 1 (1) calls for “a wide interpretation” and offers an illustrative and open-ended list. The purpose of the footnote is to circumvent any technical difficulty that may arise.
Article 2 – Interpretations
a. Arbitration
b. Arbitral tribunal
Expert appraisers or auditors are not arbitrators.
Article 3
any written communication is deemed to have been received if it is delivered to the addressee personally or if it is delivered at his place of business, habitual residence or mailing address
Article 5
It emphasizes that the role of courts to intervene in arbitrations conducted under the Model Law is limited strictly to such matters as are specifically provided in this Law
Article 7
The arbitration agreement shall be in writing – William Company v. Chu Kong Agency Co. Ltd. and Guangzhou Ocean Shipping Company
Article 8
Prevents the parties from commencing court actions in relation to matters falling within the scope of the agreement. Article 8 (1) compels courts to refer an action to arbitration under certain conditions
First condition, which is substantive in nature
(i) An arbitration agreement that is neither null and void, inoperative nor incapable of being performed
(ii) Arbitration agreement not validly transferred to the party making the referral application or to the party responding thereto
(iii) Formal requirements not met
(iv) Arbitration agreement invalid because the dispute is not arbitral
Second condition, which is procedural, requires that the referral to arbitration be sought no later than when the party requesting it submits its first statement on the substance of the dispute
Article 10
Grants complete freedom to the parties regarding the number of arbitrators
The parties are free to determine the number of arbitrators. Failing such determination, the number of arbitrators shall be three.
Article 11 – Appointment of Arbitrators
It grants parties extensive freedom with respect to who may be appointed as an arbitrator as well as to how arbitrators are to be appointed.
Failure to appoint such, it allows the court or the competent authority designated in article 6 to intervene in order to resolve deadlocks in the appointment procedure.
Article 12
Impose a continuing duty to each arbitrator to disclose to the parties circumstances likely to give rise to justifiable doubts as to his or her impartiality or independence
An arbitrator may be challenged on the basis of circumstances that give rise to such doubts
Article 18
Parties shall be treated with equality and given a full opportunity of presenting their case.
Article 19
Guarantees the parties’ freedom to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings
Article 20
Freedom to designate the place of arbitration.
Distinction between place of arbitration and place of hearing
Article 21
Unless the parties have agreed on a different point in time, the arbitral proceedings commence on the date on which a request for the particular dispute to be referred to arbitration is received by the respondent.
Article 22
Parties may agree on the language or languages of the arbitral proceedings
Article 28
Determination of the rules of law governing the substance of the dispute
Grants the parties the freedom to choose the applicable substantive law
Article 29
Unless parties agreed other manner, all decisions to be made by the arbitral tribunal shall be by a majority vote of its members
Article 31
Form and contents of the award. The arbitral award must be in writing and state its date. It must also state the reasons on which it is based
Article 32
Arbitration terminates either on the issuance of the final award in the arbitration or by an order made by the tribunal in accordance with the conditions set out( claimants withdraws the claim, parties agree on termination of proceedings, arbitral tribunal finds that continuation become unnecessary or impossible.
