Ex aequo et bono
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The phrase ex aequo et bono means "according to the right and good". In the context of arbitration, it refers to the power of the arbitrators to dispense with consideration of the law and consider solely what they consider to be fair and equitable in the case at hand.
Article 33 of the UNCITRAL Arbitration Rules (1976) provides that the arbitrators shall consider only the applicable law, unless the arbitral agreement allows the arbitrators to consider ex aequo et bono, or amiable compositeur, instead.[1] This rule is also expressed in many national and subnational arbitration laws, for example s. 22 of the Commercial Arbitration Act 1984 (NSW).
Article 38 of the Statute of the International Court of Justice provides that the Court may decide cases ex aequo et bono, but only where the parties agree thereto.
