The term ‘lex mercatoria’ derives its root from the body of trading principles used by merchants throughout Europe in the medieval times . In recent decades in has been regenerated as a sort of international commercial law which displaces the use of national law in international transactions. The idea of applying national laws to international commercial arbitrations has always been an uninvited idea as it denied the parties of the freedom of choice of law which is one of the basic tenants of a party going for arbitration.
The concept that the parties by agreement can authorise the arbitral tribunal under equity clauses to act as ‘amiable composituer’ and to decide as ‘aequo et bano’ instead of deciding in accordance with the traditional system of law, was named ‘lex mercatoria’ by late Professor Goldman .
0 comments:
Post a Comment