the conclusion of the arbitration agreement was by coercive means. What other elements ought to be considered for an arbitration agreement to confer jurisdiction to a foreign arbitration institution? If the parties intend to select a foreign arbitration institution, it is important to note that the contractual dispute should have a foreign-related element. According to Supreme Court, disputes without a foreign-related element are prohibited from being submitted to a foreign arbitration institution. Chinese courts have generally found such arbitration agreements invalid. Otherwise, even if an arbitral award by a foreign arbitral institution is found that the arbitration agreement in question expressed intention of the parties to request arbitration, agreed on the matters to be arbitrated and selected a specific arbitration institution, and thus should be considered valid. Article 16 of the Arbitration Law sets out the definition of an arbitration agreement and the indispensable elements of an arbitration agreement which must include an expression of intent to request arbitration; the subject matters of arbitration; and the selected arbitration institution. Meanwhile, Article 172 of the Arbitration Law specifies the circumstances under which an arbitration agreement is invalid, including the fact that the matters to be arbitrated exceed the scope of arbitration provided for by law, that the arbitration agreement was concluded by those who are without legal capacity or with limited legal capacity, or where are present. The court, following its interpretation of provisions of Arbitration Law of China ruled that the arbitration agreement by which the parties agreed to submit a foreign-related dispute to a foreign arbitration institution with the place of arbitration in Mainland China is valid, reflecting the stance of the Chinese courts in respecting the parties’ autonomy. This is a welcoming clarification on uncertainties surrounding similar cases where the parties, fulfilling requirements of foreign-related elements, agree on conferring jurisdiction to a foreign arbitration institution while the place of arbitration is designated inside China. The award thus rendered shall be regarded as a domestic award by nature, a foreign-related arbitration award to be specific, for the purpose of enforcement in accordance with Civil Procedure Law of China. What, if any, are the legal requirements of an arbitration agreement under the laws of your jurisdiction? Article 16 of the Arbitration Law1 was cited in Case 3, and the court WWW.LAWYER-MONTHLY.COM 87 Simon Bai Grandall Law Firm If the parties intend to select a foreign arbitration institution, it is important to note that the contractual dispute should have a foreign-related element.
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