On Validity Of Unilateral Option Arbitration Clause

Unilateral option arbitration clause gives one party a unilateral right to choose litigation or arbitration after dispute arises.The nature of this clause is arbitration clause.The application of this type of clauses extends from areas of traditional commerce to particular areas of employment and tenancy in which controversy on validity of this type of clauses arises.As international treaties and domestic laws are in blank,difference exists on validity of unilateral option arbitration clause in various countries which falls into valid and invalid.It is held invalid mainly on the ground of doctrines of mutuality and unconscionability.Nowadays,majority of countries have recognized validity of this type of clauses.This clause should be confirmed valid usually because its existence has reasonable basis.While validity of this clause should be restricted by mandatory rules of contracting field and it needs to meet requirements of elements of validity,meanwhile,both parties have to make it clear how to exercise this optional right.