Skip to content

CS Professional · Arbitration, Mediation and Conciliation · International Law of Arbitration

Meera Agro Ltd and a Singapore company have an Indian-seated arbitration with Singapore law as governing law. The contract sets a fixed delivery schedule, and trade usage in the commodity permits a 3-day grace period. How must the tribunal treat these when making its award?

The tribunal must take into account both the terms of the contract and the trade usages applicable to the transaction. The duty applies in all cases, so the choice of Singapore law does not remove it, and usage does not replace the contract terms.

  1. AIgnore trade usage because the parties chose Singapore law
  2. BTake into account the contract terms and the applicable trade usageCorrect
  3. CConsider trade usage only if both parties request it
  4. DApply trade usage in place of the contract terms

Explanation

Section 28(3) requires the tribunal, while deciding and making an award, to take into account the terms of the contract and trade usages applicable to the transaction in all cases. This holds even where a foreign law is designated. Option A wrongly makes the choice of law displace trade usage.

Did you get it right without looking?

One question tells you little. A timed set on International Law of Arbitration shows your real accuracy, how long you take and where you lose marks.

Practise International Law of ArbitrationFree diagnostic mock

More International Law of Arbitration questions