Optional Arbitration: A Comparative Study under National Legal Systems

Arbitration constitutes the most common and efficient mechanism for the resolution of international commercial disputes. The spread of arbitration in general and the vital role of party autonomy, in particular, have unveiled various aspects of this method of dispute resolution and thus have caused the emergence of different types of arbitration clauses for which the parties' differing negotiating powers and distinct needs of different economic sectors have played a critical role. One of these novel but controversial types of arbitration agreements is concerned with “optional agreements.” Optional arbitration agreements provide an option for one or both parties to adjudicate their disputes either by arbitration or litigation. The nature, validity, and various aspects of such agreements have not been thoroughly examined in the primary and secondary sources. The same is true in Iranian legal literature, especially when it comes to its distinction from other types of arbitration agreements, especially voluntary arbitration. Thus, this Article attempts to discuss the nature, validity, and various types of optional arbitration agreements to unfold their unknown aspects.