Amiable composition

Power given by the parties to the arbitrators to seek an equitable solution to their dispute, by setting aside, if necessary the rule of law which would otherwise be applicable or the strict application of the contract. It is said that in this case, the arbitrator decides “ex æquo et bono”, as “amiable compositeur”, or in “equity”, these three expressions being often considered interchangeable. The only limit to the power of the arbitrator lies in international public policy, a breach of which would constitute a ground for refusing to enforce the award or for setting it aside (cf Action to set aside).