APPLICATION OF THE PRINCIPLES OF EUROPEAN CONTRACT LAW AND OTHER SOURCES OF «SOFT LAW» IN INTERNATIONAL COMMERCIAL ARBITRATION

Authors

DOI:

https://doi.org/10.26565/2075-1834-2025-39-17

Keywords:

international commercial arbitration, Principles of European Contract Law, PECL, UNIDROIT, soft law, arbitration practice, harmonization of law.

Abstract

 Introduction. The article examines the application of the Principles of European Contract Law (PECL) and other sources of "soft law" of the European Union in international commercial arbitration. It highlights the legal foundations, practical aspects, and particularities of integrating these instruments into the practices of European arbitral institutions.

Summary of the main results of the study. It is determined that although "soft law" instruments such as the PECL and the UNIDROIT Principles of International Commercial Contracts are not formally binding, they increasingly influence the resolution of commercial disputes. This is due to their ability to effectively bridge gaps in national legislation and international treaties, ensuring uniform legal standards and enhancing predictability in arbitration awards. The practices of major European arbitration institutions, such as ICC (Paris), LCIA (London), SCC (Stockholm), VIAC (Vienna), and DIS (Germany), were analyzed. It was established that these institutions actively refer to the PECL and the UNIDROIT Principles both for direct application (when explicitly chosen by the parties) and for interpreting contractual provisions and filling normative gaps when no explicit choice of law is made. Arbitration practice particularly demonstrates extensive reliance on the PECL and the UNIDROIT Principles in matters related to interpreting obligations of the parties and applying the principles of good faith and reasonableness.

Conclusion. It is substantiated that the integration of "soft law" sources into the arbitration practices of arbitral jurisdictions reflects contemporary trends in international commercial law and meets the needs of international trade. However, further expansion of their application requires enhancing legal certainty, clarifying the scope of application of such instruments, and further standardizing the practices of European arbitration centers. In perspective, strengthening the role of the PECL and UNIDROIT Principles in international commercial arbitration can promote further harmonization of contract law at the European and global levels.

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Published

2025-06-30

Issue

Section

Civil law and civil proceedings; family law; international private law

How to Cite

APPLICATION OF THE PRINCIPLES OF EUROPEAN CONTRACT LAW AND OTHER SOURCES OF «SOFT LAW» IN INTERNATIONAL COMMERCIAL ARBITRATION. (2025). The Journal of V. N. Karazin Kharkiv National University. Series Law, 39, 177-185. https://doi.org/10.26565/2075-1834-2025-39-17

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