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Public order or good morals and the court’ interpretation
Those who watched all 18 short videos from THAC may have heard the phrase ‘public order or good morals’. This phrase can also be found when study laws related to arbitration. Have you ever wonder whether or not the court interprets this phrase the same way of our understanding? Let us find out.
When asking for the meaning of ‘public order or good morals’, the answer would be that this phrase is not clearly defined by law as it depends on the court’s discretion in each case.
The Supreme Administrative Court ruled out the precedent of ‘public order or good morals’, meaning that “it must be a provision that protects public interests which the parties could not agree otherwise or exclude themselves from such provision. Furthermore, if the violation of such provision will affect the national security order, economy, or the security of the overall country.”
Here are examples of the court’s ruling of what could annul an award;
1. Impartiality of the arbitral tribunal’s performance
2. One party was unaware of the arbitral tribunal’s appointment.
3. The decided case is resubmitted to another arbitral tribunal
4. The arbitrators made a decision based upon repealed laws
5. Imposing liquidated damages without the ground from the contract clauses
These are some examples that may be commonly found but will be interpreted individually in each case to achieve the highest level of justice. To better understand ‘public order or good morals and the court interpretation’, please watch a short video provided by THAC, click.
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