European Convention on International Commercial Arbitration
Preamble
The undersigned, duly authorized,
Convened under the auspices of the Economic Commission for Europe of the United
Nations,
Having noted that on 10th June 1958 at the United Nations Conference on International
Commercial Arbitration has been signed in New York a Convention on the Recognition
and Enforcement of Foreign Arbitral Awards,
Desirous of promoting the development of European trade by, as far as possible,
removing certain difficulties that may impede the organization and operation of
international commercial arbitration in relations between physical or legal persons of
different European countries,
Have agreed on the following provisions:
Article I - Scope of the Convention
1. This Convention shall apply:
(a) to arbitration agreements concluded for the purpose of settling disputes arising from
international trade between physical or legal persons having, when concluding the
agreement, their habitual place of residence or their seat in different Contracting States;
(b) to arbitral procedures and awards based on agreements referred to in paragraph 1(a)
above.
2. For the purpose of this Convention,
(a) the term "arbitration agreement" shall mean either an arbitral clause in a contract or an
arbitration agreement being signed by the parties, or contained in an exchange of letters,
telegrams, or in a communication by teleprinter and, in relations between States whose
laws do not require that an arbitration agreement be made in writing, any arbitration
agreement concluded in the form authorized by these laws;
(b) the term "arbitration" shall mean not only settlement by arbitrators appointed for each
case (ad hoc arbitration) but also by permanent arbitral institutions;
(c) the term "seat" shall mean the place of the situation of the establishment that has made
the arbitration agreement.
Article II - Right of legal persons of public law to resort to arbitration
1. In the cases referred to in Article I, paragraph 1, of this Convention, legal persons
considered by the law which is applicable to them as "legal persons of public law" have
the right to conclude valid arbitration agreements.
2. On signing, ratifying or acceding to this Convention any State shall be entitled to
declare that it limits the above faculty to such conditions as may be stated in its
declaration.
Article III - Right of foreign nationals to be designated as arbitrators
In arbitration covered by this Convention, foreign nationals may be designated as
arbitrators.
Article IV - Organization of the arbitration
1. The parties to an arbitration agreement shall be free to submit their disputes:
(a) to a permanent arbitral institution; in this case, the arbitration proceedings shall be
held in conformity with the rules of the said institution;
(b) to an ad hoc arbitral procedure; in this case, they shall be free inter alia:
(i) to appoint arbitrators or to establish means for their appointment in the event of an
actual dispute;
(ii) to determine the place of arbitration; and
(iii) to lay down the procedure to be followed by the arbitrators.
2. Where the parties have agreed to submit any disputes to an ad hoc arbitration, and
where within thirty days of the notification of the request for arbitration to the respondent
one of the parties fails to appoint his arbitrator, the latter shall, unless otherwise provided,
be appointed at the request of the other party by the President of the competent Chamber
of Commerce of the country of the defaulting party's habitual place of residence or seat at
the time of the introduction of the request for arbitration. This paragraph shall also apply
to the replacement of the arbitrator(s) appointed by one of the parties or by the President
of the Chamber of Commerce above referred to.
3. Where the parties have agreed to submit any disputes to an ad hoc arbitration by one or
more arbitrators and the arbitration agreement contains no indication regarding the
organization of the arbitration, as mentioned in paragraph 1 of this article, the necessary
steps shall be taken by the arbitrator(s) already appointed, unless the parties are able to
agree thereon and without prejudice to the case referred to in paragraph 2 above. Where
the parties cannot agree on the appointment of the sole arbitrator or where the arbitrators
appointed cannot agree on the measures to be taken, the claimant shall apply for the
necessary action, where the place of arbitration has been agreed upon by the parties, at
his option to the President of the Chamber of Commerce of the place of arbitration agreed
upon or to the President of the competent Chamber of Commerce of the respondent's
habitual place of residence or seat at the time of the introduction of the request for
arbitration. Where such a place has not been agreed upon, the claimant shall be entitled at
his option to apply for the necessary action either to the President of the competent
Chamber of Commerce of the country of the respondent's habitual place of residence or
seat at the time of the introduction of the request for arbitration, or to the Special
Committee whose composition and procedure are specified in the Annex to this
Convention. Where the claimant fails to exercise the rights given to him under this
paragraph the respondent or the arbitrator(s) shall be entitled to do so.
4. When seized of a request the President or the Special Committee shall be entitled as
need be:
(a) to appoint the sole arbitrator, presiding arbitrator, umpire, or referee;
(b) to replace the arbitrator(s) appointed under any procedure other than that referred to in
paragraph 2 above;
(c) to determine the place of arbitration, provided that the arbitrator(s) may fix another
place of arbitration;
(d) to establish directly or by reference to the rules and statutes of a permanent arbitral
institution the rules of procedure to be followed by the arbitrator(s), provided that the
arbitrators have not established these rules themselves in the absence of any agreement
thereon between the parties.
5. Where the parties have agreed to submit their disputes to a permanent arbitral
institution without determining the institution in question and cannot agree thereon, the
claimant may request the determination of such institution in conformity with the
procedure referred to in paragraph 3 above.
6. Where the arbitration agreement does not specify the mode of arbitration (arbitration
by a permanent arbitral institution or an ad hoc arbitration) to which the parties have
agreed to submit their dispute, and where the parties cannot agree thereon, the claimant
shall be entitled to have recourse in this case to the procedure referred to in paragraph 3
above to determine the question. The President of the competent Chamber of Commerce
or the Special Committee, shall be entitled either to refer the parties to a permanent
arbitral institution or to request the parties to appoint their arbitrators within such timelimits
as the President of the competent Chamber of Commerce or the Special Committee
may have fixed and to agree within such time-limits on the necessary measures for the
functioning of the arbitration. In the latter case, the provisions of paragraphs 2, 3 and 4 of
this Article shall apply.
7. Where within a period of sixty days from the moment when he was requested to fulfil
one of the functions set out in paragraphs 2, 3, 4, 5 and 6 of this Article, the President of
the Chamber of Commerce designated by virtue of these paragraphs has not fulfilled one
of these functions, the party requesting shall be entitled to ask the Special Committee to
do so.
Article V - Plea as to arbitral jurisdiction
1. The party which intends to raise a plea as to the arbitrator's jurisdiction based on the
fact that the arbitration agreement was either non-existent or null and void or had lapsed
shall do so during the arbitration proceedings, not later than the delivery of its statement
of claim or defence relating to the substance of the dispute; those based on the fact that an
arbitrator has exceeded his terms of reference shall be raised during the arbitration
proceedings as soon as the question on which the arbitrator is alleged to have no
jurisdiction is raised during the arbitral procedure. Where the delay in raising the plea is
due to a cause which the arbitrator deems justified, the arbitrator shall declare the plea
admissible.
2. Pleas to the jurisdiction referred to in paragraph 1 above that have not been raised
during the time-limits there referred to, may not be entered either during a subsequent
stage of the arbitral proceedings where they are pleas left to the sole discretion of the
parties under the law applicable by the arbitrator, or during subsequent court proceedings
concerning the substance or the enforcement of the award where such pleas are left to the
discretion of the parties under the rule of conflict of the court seized of the substance of
the dispute or the enforcement of the award. The arbitrator's decision on the delay in
raising the plea, will, however, be subject to judicial control.
3. Subject to any subsequent judicial control provided for under the lex fori, the arbitrator
whose jurisdiction is called in question shall be entitled to proceed with the arbitration, to
rule on his own jurisdiction and to decide upon the existence or the validity of the
arbitration agreement or of the contract of which the agreement forms part.
Article VI - Jurisdiction of courts of law
1. A plea as to the jurisdiction of the court made before the court seized by either party to
the arbitration agreement, on the basis of the fact that an arbitration agreement exists
shall, under penalty of estoppel, be presented by the respondent before or at the same
time as the presentation of his substantial defence, depending upon whether the law of the
court seized regards this plea as one of procedure or of substance.
2. In taking a decision concerning the existence or the validity of an arbitration
agreement, courts of Contracting States shall examine the validity of such agreement with
reference to the capacity of the parties, under the law applicable to them, and with
reference to other questions:
(a) under the law to which the parties have subjected their arbitration agreement;
(b) failing any indication thereon, under the law of the country in which the award is to
be made;
(c) failing any indication as to the law to which the parties have subjected the agreement,
and where at the time when the question is raised in court the country in which the award
is to be made cannot be determined, under the competent law by virtue of the rules of
conflict of the court seized of the dispute.
The courts may also refuse recognition of the arbitration agreement if under the law of
their country the dispute is not capable of settlement by arbitration.
3. Where either party to an arbitration agreement has initiated arbitration proceedings
before any resort is had to a court, courts of Contracting States subsequently asked to deal
with the same subject-matter between the same parties or with the question whether the
arbitration agreement was non-existent or null and void or had lapsed, shall stay their
ruling on the arbitrator's jurisdiction until the arbitral award is made, unless they have
good and substantial reasons to the contrary.
4. A request for interim measures or measures of conservation addressed to a judicial
authority shall not be deemed incompatible with the arbitration agreement, or regarded as
a submission of the substance of the case to the court.
Article VII - Applicable law
1. The parties shall be free to determine, by agreement, the law to be applied by the
arbitrators to the substance of the dispute. Failing any indication by the parties as to the
applicable law, the arbitrators shall apply the proper law under the rule of conflict that the
arbitrators deem applicable. In both cases the arbitrators shall take account of the terms of
the contract and trade usages.
2. The arbitrators shall act as amiables compositeurs if the parties so decide and if they
may do so under the law applicable to the arbitration.
Article VIII - Reasons for the award
The parties shall be presumed to have agreed that reasons shall be given for the award
unless they:
(a) either expressly declare that reasons shall not be given; or
(b) have assented to an arbitral procedure under which it is not customary to give reasons
for awards, provided that in this case neither party requests before the end of the hearing,
or if there has not been a hearing then before the making of the award, that reasons be
given.
Article IX - Setting aside of the arbitral award
1. The setting aside in a Contracting State of an arbitral award covered by this
Convention shall only constitute a ground for the refusal of recognition or enforcement in
another Contracting State where such setting aside took place in a State in which, or
under the law of which, the award has been made and for one of the following reasons:
(a) the parties to the arbitration agreement were under the law applicable to them, under
some incapacity or the said agreement is not valid under the law to which the parties have
subjected it or, failing any indication thereon, under the law of the country where the
award was made, or
(b) the party requesting the setting aside of the award was not given proper notice of the
appointment of the arbitrator or of the arbitration proceedings or was otherwise unable to
present his case; or
(c) the award deals with a difference not contemplated by or not falling within the terms
of the submission to arbitration, or it contains decisions on matters beyond the scope of
the submission to arbitration, provided that, if the decisions on matters submitted to
arbitration can be separated from those not so submitted, that part of the award which
contains decisions on matters submitted to arbitration need not be set aside;
(d) the composition of the arbitral authority or the arbitral procedure was not in
accordance with the agreement of the parties, or failing such agreement, with the
provisions of Article IV of this Convention.
2. In relations between Contracting States that are also parties to the New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 10th
June 1958, paragraph 1 of this Article limits the application of Article V(1)(e) of the New
York Convention solely to the cases of setting aside set out under paragraph 1 above.
Article X - Final clauses
1. This Convention is open for signature or accession by countries members of the
Economic Commission for Europe and countries admitted to the Commission in a
consultative capacity under paragraph 8 of the Commission's terms of reference.
2. Such countries as may participate in certain activities of the Economic Commission for
Europe in accordance with paragraph 11 of the Commission's terms of reference may
become Contracting Parties to this Convention by acceding thereto after its entry into
force.
3. The Convention shall be open for signature until 31 December 1961 inclusive.
Thereafter, it shall be open for accession.
4. This Convention shall be ratified.
5. Ratification or accession shall be effected by the deposit of an instrument with the
Secretary-General of the United Nations.
6. When signing, ratifying or acceding to this Convention, the Contracting Parties shall
communicate to the Secretary-General of the United Nations a list of the Chambers of
Commerce or other institutions in their country who will exercise the functions conferred
by virtue of Article IV of this Convention on Presidents of the competent Chambers of
Commerce.
7. The provisions of the present Convention shall not affect the validity of multilateral or
bilateral agreements concerning arbitration entered into by Contracting States.
8. This Convention shall come into force on the ninetieth day after five of the countries
referred to in paragraph 1 above have deposited their instruments of ratification or
accession. For any country ratifying or acceding to it later this Convention shall enter into
force on the ninetieth day after the said country has deposited its instrument of
ratification or accession.
9. Any Contracting Party may denounce this Convention by so notifying the SecretaryGeneral
of the United Nations. Denunciation shall take effect twelve months after the
date of receipt by the Secretary-General of the notification of denunciation.
10. If, after the entry into force of this Convention, the number of Contracting Parties is
reduced, as a result of denunciations, to less than five, the Convention shall cease to be in
force from the date on which the last of such denunciations takes effect.
11. The Secretary-General of the United Nations shall notify the countries referred to in
paragraph 1, and the countries which have become Contracting Parties under paragraph 2
above, of:
(a) declarations made under Article II, paragraph 2;
(b) ratifications and accessions under paragraphs 1 and 2 above;
(c) communications received in pursuance of paragraph 6 above;
(d) the dates of entry into force of this Convention in accordance with paragraph 8 above;
(e) denunciations under paragraph 9 above;
(f) the termination of this Convention in accordance with paragraph 10 above.
12. After 31 December 1961, the original of this Convention shall be deposited with the
Secretary-General of the United Nations, who shall transmit certified true copies to each
of the countries mentioned in paragraphs 1 and 2 above.
IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed
this Convention.
DONE at Geneva, this twenty-first day of April, one thousand nine hundred and sixtyone,
in a single copy in the English, French and Russian languages, each text being
equally authentic.
Annex - Composition and procedure of the special committee referred to in Article
IV of the Convention
1. The Special Committee referred to in Article IV of the Convention shall consist of two
regular members and a Chairman. One of the regular members shall be elected by the
Chambers of Commerce or other institutions designated, under Article X, paragraph 6, of
the Convention, by States in which at the time when the Convention is open to signature
National Committees of the International Chamber of Commerce exist, and which at the
time of the election are parties to the Convention. The other member shall be elected by
the Chambers of Commerce or other institutions designated, under Article X, paragraph
6, of the Convention, by States in which at the time when the Convention is open to
signature no National Committees of the International Chamber of Commerce exist and
which at the time of the election are parties to the Convention.
2. The persons who are to act as Chairman of the Special Committee pursuant to
paragraph 7 of this Annex shall also be elected in like manner by the Chambers of
Commerce or other institutions referred to in paragraph 1 of this Annex.
3. The Chambers of Commerce or other institutions referred to in paragraph 1 of this
Annex shall elect alternates at the same time and in the same manner as they elect the
Chairman and other regular members, in case of the temporary inability of the Chairman
or regular members to act. In the event of the permanent inability to act or of the
resignation of a Chairman or of a regular member, then the alternate elected to replace
him shall become, as the case may be, the Chairman or regular member, and the group of
Chambers of Commerce or other institutions which had elected the alternate who has
become Chairman or regular member shall elect another alternate.
4. The first elections to the Committee shall be held within ninety days from the date of
the deposit of the fifth instrument of ratification or accession. Chambers of Commerce
and other institutions designated by Signatory States who are not yet parties to the
Convention shall also be entitled to take part in these elections. If however it should not
be possible to hold elections within the prescribed period, the entry into force of
paragraphs 3 to 7 of Article IV of the Convention shall be postponed until elections are
held as provided for above.
5. Subject to the provisions of paragraph 7 below, the members of the Special Committee
shall be elected for a term of four years. New elections shall be held within the first six
months of the fourth year following the previous elections. Nevertheless, if a new
procedure for the election of the members of the Special Committee has not produced
results, the members previously elected shall continue to exercise their functions until the
election of new members.
6. The results of the elections of the members of the Special Committee shall be
communicated to the Secretary-General of the United Nations who shall notify the States
referred to in Article X, paragraph 1, of the Convention and the States which have
become Contracting Parties under Article X, paragraph 2. The Secretary-General shall
likewise notify the said States of any postponement and of the entry into force of
paragraphs 3 to 7 of Article IV of the Convention in pursuance of paragraph 4 of this
Annex.
7. The persons elected to the office of Chairman shall exercise their functions in rotation,
each during a period of two years. The question which of these two persons shall act as
Chairman during the first two-year period after the entry into force of the Convention
shall be decided by the drawing of lots. The office of Chairman shall thereafter be vested,
for each successive two-year period, in the person elected Chairman by the group of
countries other than that by which the Chairman exercising his functions during the
immediately preceding two-year period was elected.
8. The reference to the Special Committee of one of the requests referred to in paragraphs
3 to 7 of the aforesaid Article IV shall be addressed to the Executive Secretary of the
Economic Commission for Europe. The Executive Secretary shall in the first instance lay
the request before the member of the Special Committee elected by the group of countries
other than that by which the Chairman holding office at the time of the introduction of the
request was elected. The proposal of the member applied to in the first instance shall be
communicated by the Executive Secretary to the other member of the Committee and, if
that other member agrees to this proposal, it shall be deemed to be the Committee's ruling
and shall be communicated as such by the Executive Secretary to the person who made
the request.
9. If the two members of the Special Committee applied to by the Executive Secretary are
unable to agree on a ruling by correspondence, the Executive Secretary of the Economic
Commission for Europe shall convene a meeting of the said Committee at Geneva in an
attempt to secure a unanimous decision on the request. In the absence of unanimity, the
Committee's decision shall be given by a majority vote and shall be communicated by the
Executive Secretary to the person who made the request.
10. The expenses connected with the Special Committee's action shall be advanced by the
person requesting such action but shall be considered as costs in the cause.