The Inefficacy of Termination and Nullification of the Main Contract on Contractual Stipulations as a Consequence of the Principle of Autonomy of Arbitration Agreement from the Main Contract

Abstract

One of the most important results and effects of the principle of autonomy of arbitration agreement from the main  contract is the inefficacy of termination and nullification of the main contract. It might be stated that with the termination or nullification of the main contract, the arbitration agreement, either as an arbitration condition in the terms of the main contract or as a separate agreement which is nonetheless related to the main contract, would not be localized in any instance, and thus it cannot be considered as an independent legal institution. The nullification of the terms based on the termination of main contract is justified by the principle implying the compliance of terms with the main contract, yet this rule is not universal. In some instances, based on the rule of autonomy and also the tacit agreement of parties, and considering the deviation of objectives in terms and the main contract, the principle may not be implied. By this argument, not only the acceptance of the doctrine of the autonomy of arbitration from the main contract becomes legitimate in our law, but it can also be argued that one of the most important consequences here is the autonomy of inefficacy of main contract on the arbitration agreement in Iranian law.

Keywords: Rule of Compliance of Condition, Principle of Autonomy of Condition, inefficacy of termination of contract on arbitration clause