Unilateral option clauses—review of selected jurisdictions
Produced in partnership with Latham & Watkins LLP
Unilateral option clauses—review of selected jurisdictions

The following Arbitration guidance note Produced in partnership with Latham & Watkins LLP provides comprehensive and up to date legal information covering:

  • Unilateral option clauses—review of selected jurisdictions

BREXIT: As of exit day (31 January 2020), the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For further guidance, see Practice Note: Brexit—arbitration law and practice in England and Wales and News Analysis: Brexit Bulletin—key updates, research tips and resources.

This Practice Note provides a survey of the treatment of unilateral option clauses in the following jurisdictions: China, England and Wales, France, Germany, Hong Kong, Italy, Japan, Russia, Singapore, Spain, and the United States of America. It should be read in conjunction with Practice Notes: Unilateral option clauses—an introduction and Types of dispute resolution clauses—ADR, multi-tier, hybrid and carve-out clauses.

Note: all international judgments are not reported by LexisNexis® UK.

China It is unclear how unilateral option clauses would be treated under Chinese law. Article 16 of the Arbitration Law of the People’s Republic of China of 1994 requires that an arbitration agreement, among other things, contains an expression of intention to apply for arbitration. There is concern that Chinese courts might not recognise the validity of unilateral option clauses on the basis that they