THE LAW TO BE APPLIED TO THE MERITS IN INTERNATIONAL ARBITRATION

Globalization of trade brought companies and organizations belonging to different law systems to face to face. Securing and giving trust to capital is one of most important prerequisite of the trade. Since foreign capital finds to rely on local courts risky in solving conflicts, it applies alternative conflict solving ways. international arbitration is one of them. Though, courts are basically the very natural legal conflict-solving places, the dynamic and rapid problem solving feature of arbitration made it the most influential and preferred institution in commercial conflicts. What makes arbitration effective is its ability giving parties to choose the the law they prefer to be subjected. The ability to choose the law is compatible to nature of trade seeking the trust and stability as well. In this study, it is examined which law will be applied to the substance in case of arbitration contracts.