In commercial transactions there is a general presumption that parties intend to be bound by their agreement.
There is a presumption that international commercial transactions concluded by legal entities intend to be legally bound by their agreement.
This presumption that the parties intend to arbitrate all disputes covered by the arbitration is displaced where all contracting parties effectively repudiate the arbitration agreement and litigate their dispute or where one party commences litigation before a national court and the other party does not request the court to enforce the promise to arbitrate the covered dispute but submits to the jurisdiction of the court and participates in the proceedings.
In practice, most contracting parties faced with this situation will opt to enforce the promise to arbitrate and apply for an anti- suit injunction to compel the other party to the arbitration agreement to arbitrate such covered disputes.
Add comment