401. Waiver of application of local remedies rule by treaty.

401.     Waiver of application of local remedies rule by treaty.

The agreement nominating an international arbitral tribunal may be framed so as to subject claims to its jurisdiction even though local remedies have not been exhausted1. In such a case, the tribunal will have jurisdiction and claims will be not be inadmissible merely on the basis that local remedies have not been exhausted2. If, however, the parties have agreed to the settlement of any dispute arising out of a contract by the local courts of the contracting state, the tribunal is not able to decide