Infringement and Extension of the Scope of Arbitration Agreement

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Abstract

Arbitration agreement is the most important criteria in determining the competence of arbitration tribunal and it also reflects the basis of arbitration legitimacy that its breach can be led to nullification and refusal of recognition and enforcement of related arbitral award. Breach of arbitration agreement can be divided into two groups: subjective breach and objective breach. Extension of arbitration agreement (clause) will be acceptable only if not being led to breach of arbitration agreement and also be applicable in interpreting the arbitration agreement and distinguishing the real parties and their intentions. Otherwise, the extension of arbitration agreement should be considered against the most basic principals of law; meaning that the arbitration tribunal has acted in manifest breach of its competence.

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