Article 36Applicable Law to be Applied in Arbitral Award

①The laws which the arbitral tribunal should comply with in making an arbitral award are as provided by the agreement of the parties. In this case, if laws and regulations of a given State have been designated, that designation is deemed not to designate the laws and regulations of the State providing the application of conflicting domestic and foreign laws and regulations but rather the laws and regulations of the State which are to be directly applied to the case, unless a contrary intention has been clearly indicated.

②If an agreement referred to in the preceding paragraph has not been reached, the arbitral tribunal must apply the laws and regulations of a State which has the closest relationship to the civil dispute that has been referred to the arbitration procedure and which should be directly applied to the case.

③Notwithstanding the provisions of the preceding two paragraphs, if both parties have stated a clear request, the arbitral tribunal is to decide ex aequo et bono.

④An arbitral tribunal must make decisions in accordance with the terms of the contract related to the civil dispute which has been referred to the arbitral procedure, if the contract exists, and take into account the practices applicable to the relevant civil dispute, if any practices exist.