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What are necessary elements of a contract that is supposed to follow the New York Convention?

In a hypothetical scenario, it would be signed in a country that is a member state of the convention.

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There needs to be a valid arbitration agreement

Remember that an arbitration agreement is a seperate stand-alone contract from any contracts it is part of or associated with, if indeed there are any such contracts.

Most of the limitations in the NYC apply to the arbitration itself rather than the agreement. So, a state can refuse to enforce a foreign arbitral award if:

  • The agreement was void including if one of the parties was legally incapable of entering the arbitration contract
  • a party was not given notice or otherwise prevented from presenting their case
  • the award deals with things beyond the scope of the arbitration agreement (although these can be severed if that’s possible)
  • the tribunal composition was not in accordance with the agreement or local law
  • the award is not locally binding: either because it has not yet come into force or has been legally set aside
  • the subject matter is not of a type permitted to be arbitrated
  • enforcement is against public policy

In addition, party states are permitted to limit the treaty for:

  • Convention reservation - they will only enforce awards from other member states
  • Commercial reservation - they will only enforce commercial arbitrations
  • Reciprocity reservation - they will only enforce awards that the other state will also enforce (member or no)
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