The dispute arose out of a franchise agreement (the "Franchise Agreement") in which Kabab-Ji granted a licence to a licensee (the "Licensee") to operate restaurants in Kuwait. The Franchise Agreement contained an arbitration clause (the "Arbitration Agreement"). The salient terms of the Franchise Agreement and the Arbitration Agreement were:
- the Franchise Agreement was governed by English law;
- the seat of the Arbitration Agreement was Paris;
- there was no provision stipulating the governing law of the Arbitration Agreement; and
- any amendments to the Franchise Agreement were to be agreed in writing ("No Oral Modification Clause").
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