(1) Applicable choice-of-law rules to determine the governing law in a
sale of goods contract.
(2) Applicable law to the arbitration agreement.
(1) A tribunal sitting in Sweden is not obliged to apply Swedish conflictof-
law rules, but it is recommended to do so where the parties have fixed
the seat in Sweden. In the present case the parties had not and the tribunal
decided to apply the principle of closest connection, inspired by the Rome
Convention which had not entered into force in Sweden when the contracts
were made. The parties’ choice of the Rules of the Arbitration Institute of
the Stockholm Chamber of Commerce was not evidence that the parties
intended Swedish substantive law to govern the dispute. The seller’s
country offered the closest connection. The governing law was therefore
Russian law, leading to the application of the CISG.
(2) The arbitral tribunal applied lex fori when deciding on the scope of the
tribunal’s jurisdiction since it was the “most correct and suitable law” to
govern the arbitration agreement.
Claimant: Alpha Corporation (Russian Federation)
Respondent: Beta Trading Co. (United Kingdom)
Place of arbitration:
Language of the proceedings: