THE VALIDITY OF THE ARBITRATION AGREEMENT

Abstract

An arbitration agreement is the basis of any international commercial arbitration. It is a condition for the establishment of arbitration jurisdiction and at the same time a basis for derogation from the jurisdiction of state courts. By choosing arbitration, the parties express their agreement to entrust the dispute to arbitrators, to exclude the jurisdiction of a regular state court and that the arbitrator's decision will be binding on them. It is common knowledge that any arbitration is only as good as the arbitration agreement. Namely, only on the basis of a valid arbitration agreement can arbitration jurisdiction be established and an enforceable decision made. The validity of the arbitration agreement may be subject to assessment at different stages of the procedure and by different authorities. Thus, the issue of validity can be raised before the adoption of the arbitration decision and after its adoption, and it can be decided by both the arbitration and the court, depending on the moment at which the validity is assessed.