LEGAL CERTAINTY ON THE BINDING POWER OF ARBITRATION CLAUSES IN RESOLUTION OF TRADE DISPUTES

Abstract

Cases in trade contracts related to the choice of law are contained in the Supreme Court decision Number 1558 K/Pdt/2009. In this case, the plaintiff argued that the defendant had committed an unlawful act. In the contract the parties had included an arbitration clause as a means of resolving disputes so that the panel of judges in their decision rejected the plaintiff's application. This research analyzes the binding force of arbitration clauses in international trade contracts in relation to the competence of judicial institutions. This research is normative legal research using a statutory approach, conceptual approach and case approach. The research results show that the Supreme Court Decision Number 1558 K/Pdt/2009 is able to demonstrate legal certainty regarding the binding force of the arbitration clause because what is contained in the decision is coherent with Legislation, Jurisprudence and Doctrine. The consistent application of legal rules that has been demonstrated in the Supreme Court decision Number 1558K/Pdt/2009 is able to provide legal protection for parties who have chosen arbitration as a means of resolving disputes.