These clauses are fundamental to establish, amongst other things, the:
- prevailing language of the agreement;
- forum to resolve the dispute;
- process of resolving the dispute;
- damages and costs for breaching the agreement;
- enforceability of a judgment against a party to the agreement; and
- flexibility of mediation and arbitration rules.
One of these critical flaws in these Korean agreements is the lack of consideration of dispute resolution and the simple plugging into agreements standard dispute resolution clauses.
Please see our other posts on joint venture agreements:
- Korean Joint Ventures: Bare Essential of a JV in Korea
- Listen to My Mother: JVs in Asia
- Doing Business in Asia: Due Diligence, Agreements, Attorneys and Street Smarts
- Building Systems Before JVs in Korea to Build trust Between the Parties
- Basic Agreements for Doing Business in Korea