Take an action in court, Business Law and Ethics

A is a Malaysian contractor in the oil and gas business. B is a large British oil exploration company. By a written Contract, B appointed A in January 2008 to maintain B's offshore platform for a period of 3 years. The platform is just off the coast of Terengganu.

The contract between A and B states that, "Any dispute, controversy or claim arising out of or relating to this contract, or the breach, termination or invalidity thereof, shall be decided by arbitration in accordance with the Rules for Arbitration of the Regional Centre for Arbitration Kuala Lumpur by three Arbitrators appointed in accordance with the rules. The place of Arbitration shall be Switzerland"

By letter dated 31.12.2009, B terminates the contract with A, stating that the termination was due to unsatisfactory work performed by A and that B has incurred various costs rectifying A's shoddy work.

A issued a Notice of Arbitration in January 2010 pursuant to the arbitration agreement in the Contract and claims for loss of profits as a result of the termination of the Contract. B however, has filed a claim in Court against A for breach of Contract and for damages related to the costs it says it suffered as a result of the shoddy work.

At the Preliminary meeting with the Tribunal, it was discovered that the Contract was in fact not signed by B although both parties performed their obligations under the terms stipulated under the written document (the Contract) from January 2009. On this ground, B challenges the Tribunal's jurisdiction to hear and determine the dispute on grounds that there is in fact no Contract (and therefore any arbitration agreement) between A and B.

            Based on the aforesaid facts, discuss the following:

(a) whether the Tribunal may determine if it has jurisdiction to hear and determine the disputes between the parties.

(b) if so, explain with reasons whether there is, in your view, an arbitration Agreement between A and B.

(c)  what, in your view, is the seat of the arbitration in this dispute

(d)  whether B may proceed with its action in Court.

Posted Date: 3/6/2013 1:19:23 AM | Location : United States

Related Discussions:- Take an action in court, Assignment Help, Ask Question on Take an action in court, Get Answer, Expert's Help, Take an action in court Discussions

Write discussion on Take an action in court
Your posts are moderated
Related Questions
Question 1: What are the procedures that an employer should follow before he will dismiss a worker for misconduct? Question 2: Section 39 of the Labour Act provides fo

Jurisdiction - Court of Appeal However S.64 (1) of the Constitution gives that the Court of Appeal 'shall have such jurisdiction and the powers in relative to appeals from t

Indicators of phoenix activity Stakeholders noted that there are a range of 'signals' or 'indicators' that phoenix activity may be about to occur. These generally occur before t

Political and Education function of Chief Justice Political Function Moreover the chief justice administers the presidential oath for the person who is elected like pre

Fraudulent preference - liquidator: When a transaction is void as a fraudulent preference any charge created is void and any cash paid or property transferred by the company

Payment to Promoters:   A promoter has no legal right against the company he promotes. The main reason is that the company did not ask him to promote it, and because the compa

Compulsory winding up: At the hearing other creditors of the company may oppose the petition.  If so, the court is likely to decide in favour of those to whom the larger amoun

Q. Can you describe International law? International law comprises of a set of rules that govern the international relations between sovereign states. It can be classified into

State Article 14 of air and outer space law Article 14 refers to the fact that each contracting State should agree to take effective measures to prevent the spread by means of

The impact of behaviour on the policy agenda To see the impact of behaviour, on the policy agenda and outcomes, which is generally not apparent, one way is to focus on the basi