(1) The Arbitral Tribunal shall decide the merits of the dispute on the basis of the law or rules of law agreed by the parties. In the absence of such an agreement, the Arbitral Tribunal shall apply the law or rules of law which it considers to be most appropriate.

(2) Any designation made by the parties of the law of a given state shall be construed as directly referring to the substantive law of that state and not to its conflict of laws rules.

(3) The Arbitral Tribunal shall decide the dispute ex aequo et bono or as amiable compositeur only if the parties have expressly authorized it to do so.

Article 25 Oral Hearing

(1) An oral hearing shall be arranged if requested by either party, or if the Arbitral Tribunal considers it appropriate. If a hearing is held, the Arbitral Tribunal, taking into account the wishes of the parties, shall determine the time for the hearing, its duration and how it is to be organised, including the manner in which evidence is to be presented.

(2) If an arbitrator is replaced in the course of the proceedings, the newly composed Arbitral Tribunal shall decide whether and to what extent a previously held oral hearing is to be repeated.