Where a dispute is contractual, it relates to the law applicable to the settlement of substantive disputes, including disputes relating to matters such as formal requirements, validity, interpretation of the terms, rights and obligations of the parties and liability for infringement of the underlying contract. The law applicable to the dispute between the parties does not determine how the parties object, but is used to assess their respective rights and obligations arising from the underlying contract. Moreover, it is not a necessary element of an arbitration agreement. However, in practice, we have found that the parties tend to include the law applicable to the dispute between the parties in the dispute resolution and applicability clause, which is often confusing. Therefore, the parties should pay particular attention to the differences between the law applicable to the dispute between the parties, the procedural law applicable to arbitration and the law applicable to the validity of arbitration agreements, and it is preferable to specify them clearly in the contract. Similarly, Article 8(1) of the UNC MODEL LAW PROVIDES THAT ”where a matter which is the subject of an arbitration agreement is the subject of an appeal, a court shall, where a party so requests, submit the parties to arbitration proceedings, unless it finds that the agreement is genuine and inconclusive, ineffective or unenforceable”. II. The recommended arbitration agreement in the event that the legal relationship under which it is concluded is not of a contractual nature: the parties to this contract (agreement) agree to be bound by the arbitration agreement contained in the statutes of the legal person [the name used in the contract for the corresponding legal person] the settlement before the Arbitral Tribunal for International Trade at the Chamber of Commerce and Industry of the Fédératio n of Russia, in accordance with its rules, of the settlement of all disputes arising from the claims of the participants in the legal person and the legal relations of the legal person with third parties, including disputes relating to the declaration of a transaction and/or the application of the consequences of the invalidation of transactions; and Rules. Standard arbitration agreements rarely provide for the applicable law of the arbitration agreement. However, problems can arise if this is not dealt with in the agreement – this is good practice.
Second, the law applicable to the validity of an arbitration agreement or the ”law applicable to the arbitration agreement”, which deals with the substantive law that determines the very validity of the arbitration agreement. This concept is not equivalent to the law of arbitration and also differs from the law applicable to substantive disputes because of the independence of the arbitration agreement (such as the law applicable to the underlying contract). . . .
