| Commentary

85 Enforceability of ADR clauses

| Commentary

85 Enforceability of ADR clauses

The question of the enforceability of ADR clauses1 has not yet been conclusively settled under the English law. Until recently, the courts have consistently held that agreements to negotiate, or to negotiate in good faith, are unenforceable on the basis that they are too uncertain to have binding effect2. However, recent cases appear to mark a shift in the courts’ approach in favour of upholding ADR clauses.

In Cable & Wireless plc v IBM United Kingdom Ltd3, the High Court held that an agreement to submit a dispute to ADR will be enforceable so long as

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