VIAC – Vietnam International Arbitration Centre TERMS OF REFERENCE In the Arbitration No. 66/2015 Between Locus Ltd Claimant And Rosen Ltd Respondent 1. The Terms of Reference agreed hereafter pursuant to the VIAC Arbitration Rules, Article 23, have been established through intensive email exchanges between the arbitrators and the parties and were finalized and signed at the meeting between the counsels of the Parties and the arbitrators on 5 November 2015. I. Parties 2. Locus Ltd (hereafter referred to as “Locus”) is a flower supplier organized under the law of Beta. It has its principal office at 88 Longman Road, Leisure, Beta. The telephone number is (0) 146 98 45. Claimant is represented in this arbitration by: Mr. Nolan Ross Advocate at the Court 16 Capital Lumia Beta 3. Respondent, Rosen Ltd, is a leading worldwide flower supplier headquartering in the country of Alpha. It is one of the three biggest companies providing rare flowers and their seeds to deliver to other small flower suppliers all over the world. Rosen Ltd has its principal office at 123 Victoria Road, Oceania, Alpha. The telephone number is (0) 214 77 32. Respondent is represented in this arbitration by Ms. Charlotte Landmark Advocate at the Court 77 Downtown Street Capital City Alpha II. Succinct Recital of the Circumstances of the Case 20 The Moot Problem a. Statement of the Parties’ claims on jurisdiction 4. Locus Ltd requests that the dispute be decided under the Vietnam International Arbitration Centre Rules, based on the arbitration clause under Article 10 of the Contract on the Purchase of Phoenix Tulip Seeds concluded on 20 August 2014 (“the Contract”). It argues the Arbitral Tribunal has jurisdiction over the dispute since both Parties intend to choose Vietnam International Arbitration Centre and that the arbitration be conducted in Vinland, Lamia. 5. Rosen Ltd contends that the Arbitral Tribunal does not have jurisdiction over the dispute because Vietnam International Arbitration Centre has never been chosen as the arbitration institution and the Parties failed to comply with the amicable dispute resolution procedures to initiate arbitration proceeding. b. Statement regarding the facts of the case and the Parties’ claims on the merits 6. Facts (…) 7. It is common ground that Locus Ltd has fully paid for the Contract price of USD 150,000 as provided under the contractual provisions. It is undisputed that both Alpha and Beta are Contracting States of the CISG 1980 and the Contract is governed by the CISG. Moreover, the Law on Commerce of Alpha as the verbatim adoption of the UNIDOIRT Principles of International Commercial Contracts 2010 (“PICC 2010”). 8. Locus Ltd argues that 75% of 3,000 delivered seeds by Rosen Ltd are faulted and as a result, most of the flowers could not bloom as its expectation. 9. Rosen Ltd contends that the seeds are not faulted and the defects caused to the flowers arose due to the extraordinary weather phenomenon of Beta, i.e. “Red Dragon” which badly affected the flowering process. 10. Locus Ltd reasons that it avoided the Contract pursuant to the CISG, by reason of lack of specific instructions from Rosen Ltd in the planting progress. In addition, Locus Ltd claims for damages incurred from the breach of contract committed by Rosen Ltd. Such damages consists of USD 300,000 as the loss of profit and USD 200,000 as the loss of reputation. 11. Rosen contends that it does not breach the Contract because of its fulfillment of contractual obligations and thus, the damages are inadmissible. It also contends that even if it breached the Contract, such damages had to be reduced since Locus did not fulfill its duty to mitigate the loss under Article 77 CISG. III. Issues to be determined 12. The Arbitral Tribunal shall determine the different issues arising out of the submissions of the Parties, within the limits laid down by Article 30 of the Vietnam International Arbitration Centre Rules. The issues to be determined shall include the following questions: 1. Does the Arbitral Tribunal has jurisdiction to deal with payment claims raised by Claimant? 2. Assuming that the Arbitral Tribunal has the jurisdiction: a. Did Claimant rightfully avoided the Contract? b. If Yes, to what extent should Respondent pay for the damages. IV. Names and addresses of the Arbitrators Henry Haddock, President of the Tribunal 40 Floral Road, Tudor, Lamia Ms. Maria Holmes 14 Pinky Lane, Capital Lumia, Beta 21 The Moot Problem Ms. Bianca William 5 Parmental Road, Capital City, Alpha Signed in Vinland, Lamia, on 5 October 2015 (Signed………………….) Counsel for Claimant, Locus Ltd., Mr. Nolan Ross (Signed…………………..) Counsel for Respondent, Rosen Ltd., Ms. Charlotte Landmark Maria Holmes Bianca William Henry Haddock (Signed) (Signed) (Signed) Arbitrator Arbitrator Arbitrator
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