ISSUE:
Whether the validity of the arbitration agreement was governed by any law?
Whether there was any possibility that a court might find that KFG became a party to the arbitration agreement in the franchise agreements if governed by English Law?
Whether the Court of Appeal was justified in its summary judgement?
RULE:
The Validation Principle, an established technique of contractual interpretations, states that when there is a question or ambiguity in a contract, the law assumes that the law which upholds the validity and forms the base of the contract will prevail.