Possibility of Adaption of Contracts by Arbitrators under the Theory of Oneness Arbitration

adaption of a contract when its performance leads to an excessive hardship, including an economic hardship, is widely accepted by the world’s major legal systems as well as international practices; yet, the adaption of contracts by arbitrators remains a controversial issue. Arbitrators have the authority to resolve the outstanding disputes between the parties based on the terms of the contract and the rule of law. The competence of arbitrators for revision of the parties’ agreement and adaption of its terms, in particular when the contract is silent regarding this scenario, could be inferred from the existing circumstances including terms of the contract and mandatory rules of the governing law. This paper claims that the adaption of a contract in a changed circumstance is nothing more than an interpretation of the parties’ intent to maintain the contract’s economic equilibrium. The adaption results in the restatement of the contractual term in the realm of keeping up economic balance of the contact. The theory of oneness of arbitration, as well as the principles of pacta sant servanda, competence in competence, and the similarity between jurisdiction of courts and arbitral tribunals have been employed to prove the legality of adaption of contracts by arbitrators, even when the contract and the governing law are silent on this isse