The parties entered into negotiations in September 0000 for the export of products from Yugoslavia to Germany. The Claimant allegedly informed the Defendant by telephone that its general conditions provided for arbitration before the Foreign Trade Court of Arbitration (at the Yugloslav Chamber of Commerce). Further negotiations followed and the Claimant made three deliveries. The Claimant drew up the contracts by photocopying its contractual details onto a blank sheet bearing the Defendant's letterhead. The letter contained the Defendant's signature and seal as well as the Claimant's own signature and seal. The Contracts were faxed to the Defendant, who neither confirmed nor contested them. A dispute arose when the Defendant refused to pay the purchase price for goods that were allegedly unsaleable. The Claimant initiated arbitration in Belgrade, the Defendant failed to appear and an award was rendered in the Claimant's favor. The Bavarian Supreme Court (Higher Regional Court Bavaria) denied enforcement, finding that the requirements under Article II(0) NYC had not been fulfilled as there was no "agreement in writing" as neither the requirement of "signature" nor "exchange of letters or telegrams" had been fulfilled. According to the Court, the essential factor in exchange of written statements under the NYC is mutuality, which was lacking in the faxed contracts. It considered that in principle, German law should apply to this question as a result of the the most-favored-right rule under Article VII(0) NYC. However, German law requirements and requirements under the NYC were equivalent.