COMMERCIAL ARBITRATION

COMMERCIAL DISPUTE RESOLUTION BY COMMERCIAL ARBITRATION

Commercial arbitration is one of the most commonly used methods of dispute resolution today. However, a dispute may only be resolved by arbitration if the parties have entered into an arbitration agreement, either before or after the dispute arises, and if certain other conditions prescribed by relevant laws are satisfied. In the article below, CELIGAL summarizes several key issues relating to commercial arbitration.

What is Commercial Arbitration?

Pursuant to Clause 1, Article 3 of the 2010 Law on Commercial Arbitration, commercial arbitration is a dispute resolution method agreed upon by the parties and governed by the Law on Commercial Arbitration 2010.

How is an Arbitration Agreement Regulated?

Under the Law on Commercial Arbitration 2010, disputes may only be resolved by commercial arbitration if the parties have reached an arbitration agreement. Such agreement may be established either before or after the dispute arises.

In the event that one party to the arbitration agreement is an individual who dies or loses civil act capacity, the arbitration agreement remains legally valid and binding on the heir or the legal representative of that individual.

In addition, Clause 3, Article 5 of the Law on Commercial Arbitration 2010 provides that where a party to an arbitration agreement is an organization that terminates its operations, goes bankrupt, is dissolved, merged, consolidated, divided, separated, or converted into another form of organization, the arbitration agreement shall remain legally effective and binding on the organization assuming the rights and obligations of such organization.

Cases Where an Arbitration Agreement is Invalid

In addition to provisions on the validity of arbitration agreements, the Law on Commercial Arbitration 2010 also specifically stipulates cases in which an arbitration agreement is invalid, including:

• Disputes that fall outside the jurisdiction of commercial arbitration as prescribed in Article 2 of the Law on Commercial Arbitration 2010;
• The person entering into the arbitration agreement lacks authority under the law or lacks civil act capacity as prescribed by the 2015 Civil Code;
• Failure to comply with the required form of the arbitration agreement;
• One of the parties entering into the arbitration agreement is deceived, threatened, coerced, or requests the arbitration agreement to be declared invalid;
• The arbitration agreement violates prohibitions of the law.

CELIGAL’s Services

Based on the principles of dispute resolution, commercial arbitration offers many outstanding advantages and significant benefits to parties involved in business and commercial disputes.

CELIGAL assists clients in resolving domestic and international commercial disputes. Our team of lawyers works closely with enterprises, providing advice on commercial contracts and business activities. We strive to simplify complex commercial requirements so that clients can focus on developing their businesses. Our services include, but are not limited to, the following:

• Reviewing and analyzing commercial issues and documents provided by clients;
• Proposing business projects with minimized risks and full legal compliance;
• Advising on mergers, acquisitions, and corporate restructuring, both domestically and internationally;
• Drafting contracts and reviewing contractual terms and conditions;
• Assisting clients in matters arising from obligations toward state authorities in the course of business operations.