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International Arbitration and Public Companies

Author: Guy ROBIN

Type: Article

ref: 82002871-892

N0:8 of 2002

Pages: 871-892

The capacity to arbitrate for public entities in international trade is not examined under the rules of their domestic laws by applying the method of conflict of laws but as regards to an international material rule applicable to international contracts and which will coexist with a domestic material rule limited to domestic law matters. Therefore,public entities could not escape rightfully from an international arbitration clause preliminary accepted and then put forward any restriction of their domestic laws as for their capacity to arbitrate.This would be contrary to the principle of good faith governing international commercial relationships and would constitute a breach of international public order.