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We, the following members of the Law Reform Commission of Hong Kong, present our report on the Adoption of the UNCITRAL Model law of Arbitration. The Honourable Michael Thomas CMG QC
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UNCITRAL Model Law to have force of law in Hong Kong 1-8 5. Arbitrations to which this Ordinance applies 1-10 6. Application 1-12 Part 2 General Provisions 7. Article 1 of UNCITRAL Model Law (Scope of application) 2-2 8. Article 2 of UNCITRAL Model Law ...
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Should Hong Kong have a new law based on the UNCITRAL Model?
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Should model law become part of Hong Kong law?
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What if arbitration has commenced under Article 21 of UNCITRAL Model Law?
UNCITRAL Model Law on International Commercial Arbitration (1985), with amendments as adopted in 2006. The Model Law is designed to assist States in reforming and modernizing...
In this report published in 1987, the Commission recommends that, subject to a few minor changes, the Model Law on International Commercial Arbitration adopted by UNCITRAL (United Nations Commission on International Trade Law) should replace existing Hong Kong law on international arbitration.
- The Arbitration Agreement
- The Governing Law of The Dispute
- The Award
31. Is it necessary to have an arbitration agreement?
Yes. As arbitration is a consensual process, an arbitrator has no power to determine a dispute unless the parties have agreed to this and the requirements of the arbitration agreement have been complied with. The parties may agree to arbitrate before a dispute arises (most commonly by an arbitration clause in a contract), or after a dispute has arisen. back to top
32. What effect does an arbitration agreement have?
An arbitration agreement provides the basis for an arbitrator's jurisdiction. An arbitrator will not entertain a request for arbitration in the absence of an arbitration agreement. The parties may also modify or supplement the applicable arbitration rules by express provision in the arbitration agreement. back to top
33. Can an arbitration agreement cover claims in tort, as well as contract?
Yes. An arbitration agreement is usually drafted to include claims arising "out of or in connection with" a particular contract. This wording is broad enough to cover tort claims (such as misrepresentation) that relate to the parties' transaction, and generally enables related tort and contract claims to be determined together by the arbitral tribunal. back to top
44. If a contract provides for arbitration in Hong Kong, must it also be governed by Hong Kong law?
No. The governing law of the contract need not follow the place of the arbitration. back to top
45. Does the tribunal apply Hong Kong law or the governing law of the contract?
The tribunal will apply the governing law of the contract to determine the substantive issues in a contract claim. (Procedural issues are, however, governed by the Arbitration Ordinance and the applicable arbitration rules.) If the contract is governed by a foreign law and the tribunal has no expertise of that legal system, the parties will be required to call expert evidence to establish the applicable principles of the foreign law. back to top
46. What if the contract does not state its governing law?
If the contract is silent as to its governing law, the tribunal will be required to determine what its governing law is (typically as a preliminary issue). This will be the law of the jurisdiction with which the contract has the closest connection. If the contract provides for arbitration in Hong Kong, this may be a factor in favour of the tribunal applying Hong Kong law as the governing law of the contract. back to top
83. What remedies may an arbitral tribunal grant?
A tribunal has power to grant any remedy that may be granted by the Hong Kong courts, except to make any order that is binding on non-parties to the arbitration. back to top
84. What is the time limit for making an award?
There is no specified time limit. An arbitrator who fails to issue his award in a timely manner may be removed by the court. back to top
85. Does the tribunal have the power to award interest?
The tribunal has power to award simple or compound interest on the principal sum at such rate as it considers appropriate up to the date of the award. Once made, simple interest accrues on the award at the same rates as are payable on Hong Kong court judgments. back to top
in order to apply the [UNCITRAL] Model Law equally to both domestic and international arbitrations, and arbitration agreements, together with such additional provisions as are
As a leading centre for international legal and dispute resolution services in the Asia-pacific region, Hong Kong has adopted a number of UNCITRAL instruments, including the Model Law on International Commercial Arbitration (adopted in 1985 and amended in 2006 by UNCITRAL) (“Model Law”) and the Convention on the Recognition and Enforcement of Fo...
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