Ex aequo et bono is a Latin phrase used in legal terms. In the context of arbitration, it refers to the arbitrator’s power to consider only what he considers fair and equitable in the case at hand, without regard to the law.

Article 38(2) of the Statute of the International Court of Justice provides that the Court may “decide a case ex aequo et bono if the parties agree thereto.” This means that if both parties agree, the Court can make a decision based on what is fair and just, rather than strictly following legal rules.