The Application Of Denational Rules In International Commercial Arbitration

The denational rules mainly comprise international law, general principles of law and modern lex mercatoria. Distinguish from domestic law, denational rules have their own particularity. With the new development of international commercial arbitration, the application of non-domestic rules in international commercial arbitration becomes necessary and possible.According to the traditional theory of international commercial arbitration, international law is only used to regulate the public relationship of countries; it can not to modulate the international commercial relationship of natural persons and corporations. In the recent years, this point of view is challenged by the theory of state contract. In some special situation, international law is often applied with domestic law to remedy of applying domestic merely.The general principles of law are an uncertain conception which is often mentioned, its main function is to remedy the limitation of domestic law and international law in regulating commercial relationship between countries and foreign companies. General principles of law are often chosen to apply by both parties in state contract. It is also applied as applicable law in international commercial arbitrations, especially in petroleum arbitrations. Appling general principles of law also arising intensive criticism, the scope of its application is very limited and we should not exaggerate its function.Scholars have different points of view on the conception of modern lex mercatoria. Since the birth of the its theory, the character has been the most hypersensitive topic. On the point of applying modern lex mercatoria, most scholars hold positive attitude. According to the practice of merchant legislation and international commercial arbitration, modern lex mercatoria has been widely acknowledged. In the course of applying modem lex mercatoria, it is necessary to deal with the relationship with domestic law.