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ARTICLE · 16 JUNE 2010

General Words Sufficient to Incorporate Arbitration Clause into Sale Contract

The seller, S, sought to bring a claim against the buyer, H, in London arbitration for alleged repudiatory breach of a sale contract for steel scrap.

United KingdomLitigation, Mediation & Arbitration
Tony George
Tony George
Reema Shour
Reema Shour

Habas Sinai Ve Tibbi Gazlar isthisal Endustri AS v Sometal SAL [2010] EWHC 29 (Comm)

Background

The seller, S, sought to bring a claim against the buyer, H, in London arbitration for alleged repudiatory breach of a sale contract for steel scrap. H countered that there was no arbitration agreement incorporated into their contract with S dated June 2008. The issue was whether the London arbitration clause that appeared in some of the previous contracts between the same parties was incorporated into the June 2008 contract, given that it was not expressly referred to in that contract.

The contractual history of the parties was as follows. There had been 15 contracts in all between H and S. The first three had been drafted by H and provided for UNCITRAL Arbitration Rules / Turkish arbitration. The subsequent contracts were either prepared by S and were full form contracts setting out all the applicable terms, including a London arbitration provision, or were prepared

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