At some point, entities engaged in international trade would have to make a contract, which would govern terms and specify details of the transaction. The contract would normally outline, in addition to other things, quantities, price, and delivery details. Additionally, a well written contract would have to specify a law that would govern contract interpretation and enforcement. Parties to the international agreement may not agree on the governing law that other party wants. A European counterpart, for example, may not be comfortable with the preference of its U.S. partner to resort to U.C.C. Art. 2. The U.S. entity, on the other hand, may not be comfortable with European laws. One possible neutral solution lies in the adoption of UNIDROIT Principles 2010 as the governing framework of the contract agreement. The principles take favorable position with respect to arbitration. Arbitration can be a useful instrument in international trade due to The New York Convention, which is the recognition and enforcement instrument for arbitration awards that are made outside of the United States. The United States is a signatory to The New York Convention. The reasons favoring arbitration can be found in the UNIDROIT Principles preamble: These Principles set forth general rules…
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