Arbitral awards are enforceable in most countries under a widely adopted convention, which is the principal practical advantage of arbitration in cross-border transactions.
The obligation. Contracting states recognise and enforce awards made in other contracting states, subject to limited grounds for refusal.
Grounds for refusal. Incapacity or invalidity of the agreement; lack of proper notice or inability to present the case; the award exceeding the scope of the submission; irregular composition of the tribunal or procedure; the award not yet binding or set aside at the seat; non-arbitrability of the subject matter; and public policy.
Public policy is construed narrowly in most jurisdictions, covering fundamental principles rather than ordinary error.
Set aside at the seat. An award annulled where it was made may still be enforced elsewhere in a small number of jurisdictions, which is a reason the choice of seat matters.
Procedure. An application with the award and the agreement, translated where required. Enforcement is generally summary.
Sovereign parties. Immunity from execution is a separate question from immunity from jurisdiction, and identifying attachable commercial assets is usually the real difficulty.
Timing. Limitation periods for enforcement vary by jurisdiction and are sometimes short.