Criterion of Determining Seat in Online Arbitration

One of the most common methods in dispute resolutions is arbitration and online arbitration is an emerging method in this area. The specific features of this arbitration method have led to many legal debates. Due to the lack of physical location in online arbitration, the way of determining the seat of this type of arbitration should be analyzed. The seat of arbitration is fundamental in defining the legal framework for arbitral proceedings. The basic question of the present research is how and by what criterion the seat of arbitration in such type of arbitration can be determine? The article concludes that if the disputing parties determine seat of arbitration, the parties’ agreement is valid, according to absolute delocalization theory, in spite of the lack of physical location in online arbitration. If the seat is not clearly identified by the parties’ agreement, arbitrator must choose seat of arbitration. Various criteria have been studied in this regard, but it seems that suitability of national legal framework of seat, procedural governing law and party’s choice of judicial forum, are useful for detection of implicit parties’ intention. In spite of suggestion of the abovementioned criteria, the analyses and findings of this article show that explicit regulation by the legislator on this issue is essential