Preamble II, The use of the PICC in arbitration

Abstract

This commentary focuses on Preamble II of the UNIDROIT Principles of International Commercial Contracts (PICC), with particular emphasis on the use of the PICC in arbitration. It discusses the application of the PICC as the lex contractus, including the agreement of the parties on their contract being governed by the PICC; references to general principles of law, lex mercatoria, or usages; application of the PICC when the parties have not chosen any law to govern their contract; and choice of law other than the PICC. It also addresses the use of the PICC to supplement or interpret the contract law; the use of the PICC by arbitral tribunals in situations not dealt with in the Preamble; the role of the PICC where arbitrators decide ex aequo et bono; challenge and enforcement of arbitral awards based on the PICC rather than on a domestic law; and application of the PICC to arbitration agreements.