PRACTICE NOTES
Unilateral option clauses: comparative validity and enforceability across China, England and Wales, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, Russia, Singapore, Spain, UAE and the United States
This Practice Note reviews how unilateral option clauses are dealt with across these jurisdictions: China, England and Wales, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, Russia, Singapore, Spain, the UAE and the United States of America. It should be considered alongside the Practice Notes, Unilateral option clauses—an introduction, and Types of dispute resolution clauses—litigation, mediation, multi‑tier, hybrid and carve‑out clauses. Note: LexisNexis® UK does not report every international judgment.
China
The position under Chinese law remains uncertain, and the judicial stance remains unsettled at present. Article 16 of the 1994 Arbitration Law of the People’s Republic of China stipulates that an arbitration agreement must, inter alia and among other matters, express the parties’ intention to submit to arbitration to resolve disputes. Accordingly, there is apprehension that Chinese courts may refuse to uphold unilateral option clauses, on the footing that they do not embody the
Arbitration