Chapter 42 - Commodity Arbitration - International Arbitration Law And Practice, Third Edition
Mauro Rubino-Sammartano is a Partner at LawFed-BRSA. Mr. Rubino-Sammartano is currently the President of the European Court of Arbitration and of the Mediation Centre of Europe, the Mediterranean and Middle East. He is also an associate member, as Italian advocate of Littleton Chambers in London. Mr. Rubino-Sammartano has acted and regularly acts as chairman, party-appointed, sole arbitrator and counsel in a large number of arbitral proceedings. His practice is largely based on international and national litigation and arbitration in the field of contracts, construction law, mergers and acquisitions, sales of goods, joint ventures and interlocutory injunctions.
Originally from International Arbitration Law and Practice, Third Edition
42.1. The Origin of Commodity Arbitration
Commodity traders were often faced with two shortcomings: the quality and condition of the said commodity.
Quality was either specified in the contract, or to be assessed based on the “usage in the trade.”
Condition had to be marketable and there were various factors that could make a supply unmarketable.
The disagreement between the parties on the sale of a commodity – which is the classic commodity transaction – generally then turned on quality or condition or both of these aspects. Very frequently there were no sophisticated legal issues to be decided.
Furthermore, there was an urgency to resolve the dispute very quickly when the products were perishable. Sometimes the supply had to be shipped and on other occasions had just arrived and had to be either accepted, possibly by agreeing upon a price reduction, or rejected.
A very quick dispute resolution mechanism was consequently needed.
CHAPTER 42: COMMODITY ARBITRATION
42.1 The Origin of Commodity Arbitration
42.2 The Commodity Arbitration Rules