ISSUE:
Does determining the proper law of an arbitration agreement require a specific approach?
Does the choice of law for the main contract under Rome I hold relevance?
Whether it is permissible for an English Court to allow a foreign court to decide whether proceedings before the said foreign Court are in breach of an arbitration agreement?
RULE:
Article 4 of the Rome I Regulations dictates the provision for the applicable law in the absence of choice, which upholds the ‘closest connection’ principle to decide the applicable law and also simplifies the process. The provision aims to modernize the current choice of rules and laws in contractual obligations.