## Facts

- Arab African Energy Corporation Ltd. (AAEC) and Olieprodukten Nederland B.V. (ONBV) entered an international sale contract concluded by telex.
- The telex exchange included: “English law – arbitration, if any, London according to ICC Rules.”
- A dispute arose and was submitted to ICC arbitration seated in London.
- The arbitral tribunal issued an award in favor of AAEC.
- ONBV sought leave in the English Commercial Court to appeal/review the award under the Arbitration Act 1979.
- AAEC argued that the parties, by incorporating the ICC Rules (including the then-applicable finality provision), had excluded any right of appeal.

## Issues

1. Whether the telex wording constituted a valid and enforceable arbitration agreement despite its brevity and awkward drafting.
2. Whether incorporation of the ICC Rules (including the rule stating awards are final and appeal rights are waived) amounted to an “exclusion agreement” under § 3(1) of the Arbitration Act 1979, barring leave to appeal on a question of law.

## Decision

- The court held the clause was a valid arbitration agreement: it evidenced an intention to arbitrate in London under ICC Rules with English law governing.
- The court held that reference to arbitration “according to ICC Rules” incorporated the ICC Rules’ finality/waiver provision.
- That incorporation operated as a § 3(1) Arbitration Act 1979 exclusion agreement.
- ONBV’s application for leave to appeal was refused; the award for AAEC stood.

## Legal Principles

- An arbitration agreement will be upheld where the parties’ intention to arbitrate can be ascertained, even if the clause is terse or inelegantly drafted.
- Incorporation by reference of institutional arbitration rules generally includes provisions on finality of awards, not merely procedural mechanics.
- Where statute permits contracting out of appeals on questions of law (as under Arbitration Act 1979 § 3(1)), agreement to rules providing for finality and waiver of appeal can constitute an effective exclusion agreement.

## Conclusion

The Commercial Court enforced a minimally drafted London ICC arbitration clause and treated incorporation of ICC Rules as a contractual waiver of the statutory right to appeal the award on a point of law, thereby preserving the award’s finality.


Arab African Energy Corp. v. Olieprodukten Nederland B.V., 2 Lloyd’s Rep. 419 (Q.B. (Comm. Ct.) 1983)