Bilans d’évènement
Past Event | Governing Law and Dispute Clauses in Your Contracts in Asia: What Should You Provide For?
The French Chamber of Commerce in Singapore’s Legal & Compliance Committee recently hosted a session on governing law and dispute-resolution clauses in international contracts, bringing together members to explore a critical yet frequently underestimated aspect of cross-border business.
Led by Olivier Monange, Partner at DSEA Legal, and Mathieu Abdoul-Quinque, Partner at DSEA Legal, the discussion examined the legal and practical considerations companies should address when negotiating contracts across Asia.
A strategic contractual decision
Governing-law and dispute-resolution clauses are often treated as standard provisions at the end of a contract. However, as highlighted during the session, these clauses can have a significant impact if a dispute arises.
The speakers explained that multinational companies may rely on standard contractual clauses that are not necessarily appropriate for a specific transaction and may, in some cases, prove detrimental. At the same time, small and medium-sized companies may select a governing law or jurisdiction without fully considering the implications, often due to limited familiarity with the issues involved or concerns around potential costs.
Key considerations when drafting clauses
Participants gained practical guidance on how to approach these clauses more carefully and strategically. Key factors to consider include:
- The nature and content of the contract
- The identity and location of the contracting party
- The most appropriate governing law and dispute-resolution mechanism
- The likely place where a judgment or arbitral award may need to be enforced
- The expected cost and duration of potential proceedings
Drawing on concrete experience from key Asian markets, including China, Vietnam, Indonesia and India, the session provided useful perspectives on the risks to avoid and the considerations that can help businesses preserve their position in the event of a dispute.
The French Chamber of Commerce in Singapore thanks Olivier Monange and Mathieu Abdoul-Quinque for sharing their expertise and practical insights with the FCCS community.
