Q&As

Can a dispute resolution clause in a B2B contract provide an option for one or both parties to elect to refer a dispute under the contract to either arbitration or litigation?

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Published on LexisPSL on 29/11/2016

The following Arbitration Q&A provides comprehensive and up to date legal information covering:

  • Can a dispute resolution clause in a B2B contract provide an option for one or both parties to elect to refer a dispute under the contract to either arbitration or litigation?
  • Unilateral option clauses
  • Position in England

Can a dispute resolution clause in a B2B contract provide an option for one or both parties to elect to refer a dispute under the contract to either arbitration or litigation?

Contracts often contain dispute resolution clauses which provide an alternative to a straightforward agreement to resolve any disputes that arise by litigation or arbitration. Parties have several options open to them, eg:

  1. mediation clauses

  2. multi-tier clauses

  3. hybrid clauses, and

  4. carve-out clauses

For more information on these options, see Practice Note: Types of dispute resolution clauses—litigation, mediation, multi-tier, hybrid and carve-out clauses.

Unilateral option clauses

It is possible for parties to a commercial

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