Question
As a trainee in the legal department of INTERNATIONAL LAW CONSULTING based in Paris, you will be able to must draft several consultations in the
As a trainee in the legal department of INTERNATIONAL LAW CONSULTING based in Paris, you will be able to
must draft several consultations in the cases below. You must, in each case
propose a detailed and precise answer.
I - In September 2010, the London company JOHNSON, specialised in software design,
concludes a contract with the Czech transport company PRAGWA, by which the first company to
undertakes to design software for the second party to manage in real time the units of
transport. The delivery date is set for 1 April 2012. The agreement includes, without indication of
applicable law, an arbitration clause referring in case of dispute to arbitration by the Chamber of Commerce of the
International Trade, arbitration under the ICC Rules of Arbitration.
On July 5, 2012, after repeated but unsuccessful attempts by PRAGWA to take over
contact with the company JOHNSON, the Czech company files a request for arbitration in order to obtain
compensation for the damage suffered as a result of the non-performance of the other party's obligations
contractual.
A tribunal of three arbitrators is appointed to sit in Paris. In the absence of choice of law
by the parties, the award, rendered on 10 September 2012, is based on the principles of the lex
mercatoria to award damages to PRAGWA. However, the amount awarded is
much less than what English law would have permitted PRAGWA to obtain.
In this context, a representative of PRAGWA is seeking your advice. He argues that arbitrators
should have applied English law, the law of the registered office of JOHNSON and not the lex mercatoria which is
than a doctrinal theory without legal value. He threatens to bring a case before the French state judge with a
action for annulment of the arbitral award.
What do you think about it?
II- In parallel to this case, your trainee's supervisor submits a commercial contract to you that the
INTERNATIONAL LAW CONSULTING would like to conclude with a Spanish company. This contract
contains the following clause under the heading "Litigation - Applicable Law": "The Lex Mercatoria is applicable to the contract and any dispute relating to the interpretation or execution of the contract is subject to the following clause: "The Lex Mercatoria is applicable to the contract and any dispute relating to the interpretation or execution of the
this contract shall be subject to the jurisdiction of the French courts".
Comment on this clause and modify it if necessary.
III- Seeking your legal advice, the company RESINA, established in Belgium, submits a contract to you.
business she is currently negotiating with an Italian company. RESINA is hesitating to
introduce an electio juris clause. What do you think of this?
In such a case, it wonders whether it would be better to opt for the UNIDROIT principles.
on international commercial contracts, CISG or French law? Advise RESINA in order to
educational!
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