PART 2: The separability principle in International Commercial Arbitration
B . ISSUE OF SEPARABILITY PRINCIPLE Article 18.2(a)&(b) AA 2005 (ACT 646) It is analogous to; Section 7 Arbitration Act 1996 UK Article 16.1 Arbitration Act 1996 New Zealand Generally remodelled or is a restatement after the parent provision Article 16 of the UNCITRAL Model Law Again from his book, I learned the PRINCIPLE OF SEPARABILITY that; Separability is the an arbitration clause considered as an separate agreement, detached from the main contract, therefore treated as an agreement independent of other terms of the contract. If the arbitration clause lacks autonomy, then there is no reason why Arbitral Tribunal should follow rest of the contract. If the arbitration clause is autonomous, it has a life on its own. Therefore, it has to be treated as an agreement and will not be affected by possible nullity of the contract to which it belongs. The arbitration clause survives the demise of the main contract then constitutes the necessary agreement of th...