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Question

International Arbitration

1.There are no concerns about the validity of this arbitration clause. This is because it reflected the mutual agreement and conscious of the two companies involved to turn to arbitration as the means of solving their disputes. The companies did not resort to other means of solving disputes after they failed to agree on how to price the metal frames in order to make a profit. This is a requirement for any agreement to be considered valid. The foundation of arbitration is the agreement on the part of both parties to have their disagreement resolved via a third-party arbitrator.

2.This is not a pathological clause. The phrase "pathological clauses" is used to refer to arbitration provisions that seem to have a fault or defects that are likely to interfere with the normal flow of the arbitration process. Such provisions have the potential to be a source of contention throughout the whole of the case, from fights over which court has jurisdiction to objections posed while the judgment is being enforced.  However, not every defect renders an arbitration provision invalid and unenforceable, meaning that it may still be used. Interpretation may be used as a tool to help address some of these issues, depending on the problem.

3.The law of the arbitration clause applies in relation to whether a clause is valid or pathological. When negotiating contracts, treaties, or individual arbitration agreements, it is important to make this decision in advance whether arbitration is to be used as the method of choice for the settlement of disputes. However, if there is agreement from both sides, this may even be included after a disagreement has already taken place. The parties are at free to alter the provision in accordance with their needs and requirements. The Arbitration Rules do not set any restrictions on the parties' ability to freely choose the court and language of the arbitration, as well as the legal system that will apply to the contract.

4.The contract law is applicable to the claim that alleges a breach of the contractual term requiring re-negotiation of the price annually. The common law of contracts in England serves as a significant inspiration for Singapore's contract law, which is substantially modelled after it. As a result, the guidelines that have been established by the courts in Singapore are extremely similar to those that have been established by English common law.  There was no effort at all made by the Parliament of Singapore to modify the Singapore's law of contract. As a result of this, a significant portion of the law of contracts in Singapore continues to take the form of judge-made regulations.

Expert Solution

1.    There are no concerns about the validity of this arbitration clause. This is because it reflected the mutual agreement and conscious of the two companies involved to turn to arbitration as the means of solving their disputes. The companies did not resort to other means of solving disputes after they failed to agree on how to price the metal frames in order to make a profit. This is a requirement for any agreement to be considered valid. The foundation of arbitration is the agreement on the part of both parties to have their disagreement resolved via a third-party arbitrator.

 

2.    This is not a pathological clause. The phrase "pathological clauses" is used to refer to arbitration provisions that seem to have a fault or defects that are likely to interfere with the normal flow of the arbitration process. Such provisions have the potential to be a source of contention throughout the whole of the case, from fights over which court has jurisdiction to objections posed while the judgment is being enforced.  However, not every defect renders an arbitration provision invalid and unenforceable, meaning that it may still be used. Interpretation may be used as a tool to help address some of these issues, depending on the problem.

 

3.    The law of the arbitration clause applies in relation to whether a clause is valid or pathological. When negotiating contracts, treaties, or individual arbitration agreements, it is important to make this decision in advance whether arbitration is to be used as the method of choice for the settlement of disputes. However, if there is agreement from both sides, this may even be included after a disagreement has already taken place. The parties are at free to alter the provision in accordance with their needs and requirements. The Arbitration Rules do not set any restrictions on the parties' ability to freely choose the court and language of the arbitration, as well as the legal system that will apply to the contract.

 

The contract law is applicable to the claim that alleges a breach of the contractual term requiring re-negotiation of the price annually. The common law of contracts in England serves as a significant inspiration for Singapore's contract law, which is substantially modelled after it. As a result, the guidelines that have been established by the courts in Singapore are extremely similar to those that have been established by English common law.  There was no effort at all made by the Parliament of Singapore to modify the Singapore's law of contract. As a result of this, a significant portion of the law of contracts in Singapore continues to take the form of judge-made regulations

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