In arbitral proceedings, the applicable procedural law may be chosen by the parties.

Question

BlackTom AI · Accepted Answer

Consider the statement: 'In arbitral proceedings, the applicable procedural law may be chosen by the parties.'
Option 1: True. This is correct because international arbitration practice often allows the parties to agree on the procedural law that governs the arbitration, typically through a choice of law clause or an agreement on the procedural rules (e.g., governing rules of the arbitral institution, or a designated national law). When such an agreement exists, tribunals will apply the chosen procedural framework, subject to any mandatory provisions of the place of arbitration or applicable institutional rules.
Option 2: False. This would be incorrect because the premise of the statement aligns with common arbitral practice, where the parties can decide the procedural regime. Saying the procedural law cannot be chosen ignores the widely accepted freedom of contract in arbitration, including the ability to select procedural rules, governing law for procedural matters, or appoint an appropriate governing law through a clause. It would overlook mandatory rules that may still apply, but the existence of a party choice does not render the proposition invalid.
In summary, the statement reflects a foundational principle in many arbitration regimes: the parties’ autonomy to select the procedural framework governing their dispute, within any mandatory constraints imposed by law or arbitration rules. Therefore, the true option accurately captures this principle, while the false option wrongly denies the possibility of a party-driven choice in practice.

25_4 LAW3000 Business Law

In arbitral proceedings, the applicable procedural law may be chosen by the parties.

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