header-logo header-logo

Unilateral option clauses to arbitrate

17 February 2023 / Masood Ahmed , Syed Naman Ali
Issue: 8013 / Categories: Features , Procedure & practice , Arbitration , ADR
printer mail-detail
To arbitrate or to litigate? Masood Ahmed & Syed Ali explore the courts’ approach to unilateral option clauses both at home & abroad
  • The English courts have traditionally recognised and upheld unilateral option clauses (UOCs), including in the recent case of Aiteo v Shell.
  • However, careful thought should be given to the merits of including UOCs in contracts, because other jurisdictions have taken a more cautious approach.

A unilateral option clause (UOC), sometimes referred to as an asymmetric jurisdiction clause, provides one party or a group of parties (but not all the parties) the right to elect between arbitration or litigation to resolve a dispute, thereby providing flexibility to the parties to choose the most appropriate procedure to resolve their dispute. Indeed, the Court of Appeal in Etihad Airways PJSC v Flöther [2020] EWCA Civ 1707 recognised the commercial efficacy and widespread use of UOCs in international finance transactions.

The English courts have traditionally recognised and upheld UOCs in respect of London-seated arbitrations—an approach

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

Taylor Wessing—Max Millington

Taylor Wessing—Max Millington

Banking and finance team welcomes partner in London

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
back-to-top-scroll