The Supreme Court denied the appeal against a decision of the appellate court (ARGENTINA 2) which had denied recognition and enforcement of a London award rendered in respect of a contract for the construction of two vessels. The Supreme Court agreed with the lower court that recognition and enforcement would violate public policy – the fundamental principles enshrined in the Constitution – because no valid contract had been concluded between the parties and, as a consequence, no arbitration clause had come into existence. The construction contract was conditioned on the approval by a law of the Province of Buenos Aires. No such law had been enacted. Two subsequently enacted laws and one decree concerning a bank guarantee obtained by the Argentinean seller for building the vessels did not amount to the required legislative approval.