Law
How Lex Mercatoria Governs Transnational Commercial Arbitration Awards
Quick fact
In international commercial arbitration, awards are increasingly based on lex mercatoria—a body of transnational commercial law—rather than the national law of any state. This allows disputes to be decided according to internationally accepted trade usages and general principles, and such awards are widely enforceable under the New York Convention.
Why this is interesting
When two companies from different countries sign a contract, they often avoid choosing any national law to govern it. So how do arbitrators decide the dispute when the conflict arises?