§ 1297.285.Decision In Accordance With Contract Terms Taking Into Account Usage of Trade

Whatever path the tribunal took to get there -- a law the parties designated, a law the tribunal picked, or even a decision based on fairness under Section 1297.284 -- this section imposes the same two anchors on every award. In all cases, the tribunal decides in accordance with the terms of the contract, and takes into account the usages of the trade applicable to the transaction.

The contract-terms requirement keeps the tribunal from wandering away from what the parties agreed to, regardless of which body of law frames the analysis. The trade-usage requirement adds context on top of that, recognizing that commercial parties often operate against a backdrop of industry practice that gives their contract language its practical meaning. Together, the two requirements ground every award in what the parties bargained for and how their own industry conducts business.