icon--black icon--white

info [at] codac-arb.com 23 Neyebi Alley, Vesal-e-Shirazi St., Tehran, IRAN +98-21-66415895

Request for Arbitral Opinion

Arbitral Opinion-CODAC

Simple Explanation:

Sometimes it is stated in the text of the contracts that if one of the parties or a third party is found to have breached the contractual obligations, the other party has the right to terminate the contract or claim contractual damages. In this regard, the parties to the contract are always concerned about who may recognize the breach. As a rule, the parties to the contract are not satisfied that each of them unilaterally lets the other party to recognize whether it breaches the contract. On the other hand, if it is postponed to the agreement of the parties, it is still not a good solution. Therefore, the CODAC Arbitration Center recommends that the parties to the contract leave the recognition of contractual matters to the CODAC arbitrators so that the arbitrator(s) can render an “Arbitral Opinion”. Suppose, for example, that the contract states: "In the event of force majeure, either party to the contract may terminate the contract." The first dispute that the parties may face is that the first party claims that force majeure has occurred but the second party does not believe it to have occurred. Obviously, we cannot simply say that force majeure has occurred by claiming the first party, and on the other hand, we cannot accept the opinion of the second party that force majeure has not taken place. The only solution is to choose a third party to detect the occurrence of force majeure. Therefore, in this regard, the selection of CODAC arbitrator(s) is very useful and as a neutral person can prevent differences between the parties.

 

Article 47 of CODAC Arbitration Club

Arbitral Opinion

The Parties may, based on the Undelying Contract, Arbitration Contract or subsequent agreement, refer the followings to the arbitration under these Rules:
a)     recognition of some events in the contract through the arbitration (such as determination of breach, force majeure, default, non-fulfillment of obligations, late performance of obligations, change of contractual circumstances, hardship and any other contractual issue).
b)    Modification, alteration or adjustment of the contractual provision, or drafting the substitute provision in the Underlying Contract.