CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

In an arbitration seated in Mumbai between Iyer Agro Ltd and a Kenyan importer, the tribunal applies the agreed law but ignores a clear trade usage applicable to the transaction and an express price-adjustment term in the contract. Which statement is correct?

The tribunal must, in all cases, take into account the terms of the contract and the trade usages applicable to the transaction when deciding and making an award. This duty applies to both domestic and international commercial arbitrations and does not depend on a party's request.

1. AThe tribunal may ignore both since only the designated law matters
2. BThe tribunal must, in all cases, take into account the terms of the contract and trade usages applicable to the transactionCorrect
3. CTrade usages need be considered only in domestic arbitrations
4. DContract terms need be considered only if the parties request it