Interpretation of Article II(3) of the New York Convention
Article II(3) of the New York Convention prescribes that the court of a Contracting State shall refer the parties of an action to arbitration, if there is a valid arbitration agreement between the parties regarding the subject matter of the dispute. On the other hand, the same provision sets forth the exceptions of this rule. Accordingly, an arbitration agreement would be deemed as invalid if it is “null and void, inoperative or incapable of being performed”. This paper analyzes the meaning and scope of the said exceptions.
Keywords: New York Convention, arbitration agreement, validity, null and void, inoperative, incapable of being performed