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1、PartyAutonomyandtheChoiceofSubstantiveLawinInternationalCommercialArbitrationMasterThesis20CreditsSpring2006By;HelenaCarlquistSupervisor;ProfessorSvanteO.JohanssonDepartmentofLawSchoolofBusiness,EconomicsandLawG?TEBORGUNIVERSITYPartyAutonomyandtheChoiceofSubstantiveLawinIntern
2、ationalCommercialArbitrationH.CarlquistSummaryAmajorityofinternationalcommercialcontractsincludeanarbitrationclausewhichintheeventofacontractualdisputedirectsthepartiestoapplyarbitralproceeding.Oneofthecentralmotivesforchoosingarbitrationistherighttochoosewhichlaworrulesoflaws
3、hallgoverntheparties’contractualrelationship.Therighttochoosesubstantivelawisoftenreferredtoaspartyautonomy.Mostpartiesenteringintoarbitrationagreementsbelievethatonceachoiceoflawismade,thatlawexclusivelydeterminesthelegalframeworkbetweentheparties.However,thisoverlooksthefact
4、thatcircumstancesremaininwhichanarbitratorwillberequiredtoapplyrulesarisingfromalegalregimeotherthantheonechosenbytheparties.Thereexistinfactnumerousofrestrictionswhichindifferentwayslimitstheparties′choiceoflaw.Thisthesisisanattempttopresentausefulandefficientmethodwhenidenti
5、fyingwhichrestrictionstheparties’choiceoflawmightbesubjectto.PartIpointsoutthebasicsofinternationalcommercialarbitrationandpresentsanoverviewoftheprincipleofpartyautonomyinthecontextofapplicablesubstantivelaw.PartIIshowsthatpartyautonomyisaconflictrulewhichintheeventofaconflic
6、tbetweenpotentialapplicablelawsdesignatesthe“correct”applicablelaw.Aspartyautonomyinitselfisaconflictrule,privateinternationallawmustbeappliedtodetermineitsscope.Accordingly,privateinternationallawanditsconflictrules(otherthanpartyautonomy)mighthavetobeappliedevenifthepartiesh
7、avechosenanapplicablelaw.PartIIIexaminescurrentarbitrationlawsandrulesoflawinrespecttoconflictrules.Thesectionshowsthatmodernlegislationoftengrantthearbitraltribunalafar-reachingfreedombylettingthearbitratorsusetheconflictrulesitdeemappropriate(orevenbygivingthearbitratorsthef
8、reedomnottouseanyconflictrulesatall).PartIVdiscusseswhichsyst
