Typical Commodity Disputes

Contracts for the sale and purchase of commodities lie at the heart of international trade. A single transaction for the sale of a particular commodity is likely to involve a number of other contracts or commercial transactions. Commodities lawyers can help you with any disputes that arise.

Dispute resolution mechanisms are set forth in standard contracts providing for arbitration under the rules of various trade associations.

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From a comparative perspective, commodity arbitration differs significantly from mainstream commercial arbitration under some arbitral institutions, such as the ICC or the LCIA.

In order to avoid discrepant outcomes, arbitration rules of different trade associations provide that any dispute, in relation to quality or condition, is to be resolved between the initial seller and the last buyer, as if they were a party to a single contract. The award of such an arbitration, however, is binding on all intermediate parties and may be enforced by any party against its immediate contracting party.

In a constantly evolving industry, those involved in the production and trading of raw materials face particular challenges at every stage of the product lifecycle. Reach out to a commodities lawyer for assistance.

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