Resolution of Economic Disputes: Administrative Reconsideration
Resolution of Economic Disputes: Administrative Reconsideration
(IV) Arbitration agreement
1. Concept of arbitration agreement
An arbitration agreement refers to the expression of intention reached between the disputing parties to submit any disputes relating to their substantive rights and obligations that have occurred or may occur in the future to an arbitration institution for arbitration.
2. Form and content of an arbitration agreement
An arbitration agreement is entered into by the disputing parties on the basis of equality and free will through negotiation, reflecting the common will of both parties. An arbitration agreement should generally be concluded in written form and its contents must comply with the law. An arbitration agreement may be an arbitration clause in a contract or an agreement for arbitration reached in any other written form before or after the occurrence of a dispute. An arbitration agreement shall contain: ① a manifestation of mutual assent to refer to arbitration; ② the issues to be arbitrated; and ③ the arbitration commission selected.
3. Requirements for an arbitration agreement
An arbitration agreement must meet the following requirements: ① The dispute to be referred to arbitration are arbitrable according to the law; ② An arbitration agreement must be entered into by persons with full capacity for civil acts. If a party to an arbitration agreement is a legal entity, the agreement must be signed by the legal representative or authorized agent of the legal entity; and ③ The arbitration agreement must be a manifestation of the true will of the parties. An arbitration agreement entered into under coercion, duress, or inducement shall be deemed invalid; ④ An arbitration agreement shall not violate the law or social and public interests, and international arbitration shall not violate the national public order; and ⑤ An arbitration agreement shall be made in written form according to the law.
4. Invalid arbitration agreement
An arbitration agreement shall be invalid if:
(1) the scope of submission to arbitration contemplated by the arbitration agreement is beyond the scope of submission to arbitration specified by law;
(2) it was entered into by a person without capacity or with limited capacity for civil acts; or
(3) it was entered into by a party under duress by the other party.
If the issues to be arbitrated or an arbitration commission is not expressly specified in an arbitration agreement, the parties may reach a supplementary agreement, failing which the arbitration agreement shall be invalid.
Robert Zhang 
Steve Li 