Unilateral Option Arbitration Clause

Arbitration clauses, in their nature, impose on the parties an obligation to refer their disputes to arbitration as set forth in the arbitration agreement. Such agreements are vastly symmetrical – they provide both parties with the equal right to invoke arbitration proceedings.

This article written by JPM partner Djordje Novčić, Senior Associate Ivana Petković and Associate Dušan Žegarac explores unilateral option arbitration clauses (UACs), which give one party the option to choose arbitration while requiring the other party to litigate disputes in court.

The authors also analyze the matter of the recognition of UACs under Serbian arbitration law and case law, finding that arbitral tribunals in Serbia generally uphold the validity of UACs based on party autonomy principles. The article further discusses the issues that arise regarding the validity and enforceability of UACs across different jurisdictions.

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