Effectiveness Of Jurisdiction Agreements

28 The general trend around the world allows parties to choose a neutral forum to hear their differences. See for example. B Hague Convention on the Choice of Agreements 2005, art. 3; Regulation Brussels I, Article 23, paragraph 1. However, some restrictions may be necessary to protect the weaker party in contracts that do not have bargaining power processing, such as employment contracts and consumer contracts. Chinese law does not provide a protection jurisdiction for these contracts. If, in the future, China`s “practical links” jurisdiction rules are removed, protection rules should be established to provide guarantees to weaker parties in special contracts. 20 Art. 244 of China`s Civil Procedures Act (amended) 2007. National judicial agreements, which can only be used in contractual cases, are governed by different rules. See art 25. The law does not specify what “property rights” mean. In previous editions of Law Update, we discussed the decisions of the UAE Courts that exercise jurisdiction, despite attempts by the parties to “contract” by the national courts, agreeing to submit exclusively to the courts of another jurisdiction and to choose another law to settle their commercial relations.

The courts of the United Arab Emirates, including the Dubai courts that apply civil and commercial law of the federal state, have in the past avoided and ignored such agreements as a matter of public policy and have maintained jurisdiction under Sections 20 and 21 of Federal Law No. 11 of 1992 [“Civil Law” or CPL]. When initiating proceedings within their jurisdiction, national courts regularly apply UAE law, independent of other persons elected by the parties. The CPL provides, among other things, that national courts hear proceedings against foreigners, even if they do not have a residence or residence in the United Arab Emirates, but have chosen the jurisdiction of the United Arab Emirates or, where the proceedings involve the ownership of the United Arab Emirates, they concern the inheritance or estate of a national of the United Arab Emirates; either if the procedure involves an obligation to be made, executed or executed in the United Arab Emirates, a contract that must be certified in the United Arab Emirates, an event that occurs in the United Arab Emirates, or a bankruptcy notified by a United Arab Emirates court. In recent years, the use of jurisdictional agreements that grant unilateral rights to one of the parties – to be sued or adjudicating in a forum that is not available to other parties – has increased. Chinese jurisprudence shows great diversity in the application of exclusive jurisdiction clauses. In practice, some Chinese courts often ignore the exceptional effect of an existing clause on foreign jurisdiction. It can be said that these Chinese courts do not respect party autonomy and international unity.