Application of the UNIDROIT Principles in International Commercial Arbitration: An Arbitrator’s Discretion in ICC Arbitration

Abstract: The use of the UNIDROIT Principles of International Commercial Contracts has seen a growing prevalence in international commercial arbitration aided by the recognition of rules of law by various arbitration legislation and institutional rules. These principles are applied in various ways, including as substantive law and as a means of interpreting or supplementing domestic law and uniform law instruments. This is a departure from the conventional/traditional choice of a national law.Any deviation or departure from a norm or practice is worth examining. This thesis, therefore, attempts to do just that by exploring the circumstances under which arbitral tribunals determine to apply the UNIDROIT Principles, either as substantive law or in other capacities, and the factors they consider in making such determinations within the context of ICC arbitration practice.An analysis of ICC arbitral awards demonstrates that tribunals exercise their discretion cautiously when it comes to the application of the UNIDROIT Principles, as evidenced by the considerations they take into account.