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EN BANC

[G.R. No. 119657. February 7, 1997.]

UNIMASTERS CONGLOMERATION, INC.,petitioner, vs. COURT

OF APPEALS and KUBOTA AGRI-MACHINERY PHILIPPINES,

INC.,respondents.

Sebastian Liganor Galinato and Tierra for petitioner.

Farcon, Gabriel, Farcon and Associatesfor private repon!ent.

SYLLABUS

1.RE"E#$A% %A&' AC($)N' *EN+E' AGREE"EN( (-ERE)N ARE

E/%$C$(%0 A%%)&E#' R+%E. Ru2e 3 of t4e Ru2e of Court et fort4 t4e

prinip2e enera22y overnin t4e venue of ation, 4et4er rea2 or perona2, or

invo2vin peron 4o neit4er rei!e nor are foun! in t4e /4i2ippine or ot4erie.

Aree8ent on venue are ep2iit2y a22oe!. "By written agreement of the parties the

venue of an action may be changed or transferred from one province to another.: e. ;,

Ru2e 3, Ru2e of Court. /artie 8ay by tipu2ation aive t4e 2ea2 venue an! u4 aiver

i va2i! an! effetive bein 8ere2y a perona2 privi2ee, 4i4 i not ontrary to pub2i

po2iy or pre

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;.$#.' $#.' $#.' $#.' GENERA%%0 REGAR#E# A /ER"$$*E )R

C)"/%$"EN(AR0 () R+%E 3 )F (-E R+%E )F C)+R(' ECE/($)N. An

ana2yi of t4ee pree!ent reaffir8 an! e8p4aie t4e oun!ne of t4e!olytrade

prinip2e. )f t4e eene i t4e aertain8ent of t4e partie@ intention in t4eir aree8ent

overnin t4e venue of ation beteen t4e8. (4at aertain8ent 8ut be !one eepin

in 8in! t4at onveniene i t4e foun!ation of venue reu2ation, an! t4at t4e ontrution4ou2! be a!opte! 4i4 8ot on!ue t4ereto. -ene, t4e invariab2e ontrution

p2ae! on venue tipu2ation i t4at t4ey !o not neate but 8ere2y o8p2e8ent or a!! to

t4e o!a2 tan!ar! of Ru2e 3 of t4e Ru2e of Court. $n ot4er or!, un2e t4e partie

8ae very 2ear, by e8p2oyin ateoria2 an! uitab2y 2i8itin 2anuae, t4at t4ey i4

t4e venue of ation beteen t4e8 to be 2ai! on2y an! e2uive2y at a !efinite p2ae, an!

to !irear! t4e preription of Ru2e 3, aree8ent on venue are not to be rear!e! a

8an!atory or retritive but 8ere2y per8iive, or o8p2e8entary of ai! ru2e. (4e fat

t4at in t4eir aree8ent t4e partie peify on2y one of t4e venue 8entione! in Ru2e 3, or

fi a p2ae for t4eir ation !ifferent fro8 t4oe peifie! by ai! ru2e, !oe not, it4out

8ore, uffie to 4araterie t4e aree8ent a a retritive one. (4ere 8ut, to repeat, beao8panyin 2anuae 2ear2y an! ateoria22y eprein t4eir purpoe an! !ein

t4at ation beteen t4e8 be 2itiate! on2y at t4e p2ae na8e! by t4e8, E.G. :on2y,:

:o2e2y,: :e2uive2y in t4i ourt,: :in no ot4er ourt ave ,: :partiu2ar2y,: :no4eree2e buteept ,: et. rear!2e of t4e enera2 preept of Ru2e 3 an! any !oubt or

unertainty a to t4e partie@ intention 8ut be reo2ve! aaint ivin t4eir aree8ent a

retritive or 8an!atory apet. Any ot4er ru2e ou2! per8it of in!ivi!ua2, ub

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aive!, an! t4e Reiona2 (ria2 Court ou2! be atin entire2y it4in it o8petene an!

aut4ority in proee!in to try an! !ei!e t4e uit.

D E C I S I O N

NARVASA,# .$ pI

(4e appe22ate proee!in at bar turn upon t4e interpretation of a tipu2ation in a ontrat

overnin venue of ation t4ereun!er ariin.

)n )tober =H, 19HH ubota AriJ"a4inery /4i2ippine, $n. >4ereafter, i8p2y

+B)(A? an! +ni8ater Con2o8eration, $n. >4ereafter, i8p2y +N$"A(ER?

entere! into a :#ea2er4ip Aree8ent for a2e an! ervie: of t4e for8er@ pro!ut in

a8ar an! %eyte /rovine. 1(4e ontrat ontaine!, a8on ot4erI

1?a tipu2ation rea!inI : . . . A22 uit ariin out of t4i Aree8ent 4a22

be fi2e! it4 in t4e proper Court of Kueon City,: an!

=?a proviion bin!in +N$"A(ER to obtain >a it !i! in fat obtain? a

re!it 2ine it4 "etropo2itan Ban an! (rut Co.J(a2oban Bran4

in t4e a8ount of /=,,. to aner for it ob2iation to

+B)(A.

o8e five year 2ater, or 8ore preie2y on #ee8ber =3, 199;, +N$"A(ER fi2e! anation in t4e Reiona2 (ria2 Court of (a2oban City aaint +B)(A, a ertain

Reyna2!o Go, an! "etropo2itan Ban an! (rut Co8panyJ(a2oban Bran4 >4ereafter,

i8p2y "E(R)BAN? for !a8ae for brea4 of ontrat, an! in+N$"A(ER? for

an! in t4e a8ount of /= 8i22ion overe! by !efen!ant "E(R)BAN . . . or by ay of4arin . . . >+N$"A(ER? for any a8ount pai! an! re2eae! to !efen!ant . . .

>+B)(A? by t4e -ea! )ffie of "E(R)BAN in "aati, "etroJ"ani2a . . .: (4e

Court a2o et t4e app2iation for pre2i8inary in

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)n Danuary 3, 1993 +B)(A fi2e! to 8otion. )ne praye! for !i8ia2 of t4e ae on

t4e roun! of i8proper venue >ai! 8otion bein et for 4earin on Danuary 11, 1993?.

(4e ot4er praye! for t4e tranfer of t4e in+B)(A? i 4o2!in

it prinipa2 p2ae of buine in Kueon City. (4e proper venue t4erefore

puruant to Ru2e of Court ou2! eit4er be Kueon City or (a2oban City at t4ee2etion of t4e p2aintiff. Kueon City an! "ani2a >sic?, a aree! upon by t4e

partie in t4e #ea2er4ip Aree8ent, are a!!itiona2 p2ae ot4er t4an t4e p2ae

tate! in t4e Ru2e of Court. (4e fi2in, t4erefore, of t4i o8p2aint in t4e

Reiona2 (ria2 Court in (a2oban City i proper.:

Bot4 or!er ere 4a22ene! a 4avin been iue! it4 rave abue of !iretion by

+B)(A in a peia2 ivi2 ation of certiorarian! pro4ibition fi2e! it4 t4e Court of

Appea2, !oete! a CAJG.R. / No. ;;=;3. $t onten!e!, 8ore partiu2ar2y, t4at >1? t4e

R(C 4a! :no +N$"A(ER@? ation oni!erint4at venue a i8proper2y 2ai!,: >=? +N$"A(ER 4a! in trut4 :fai2e! to prove t4at it i

entit2e! to t4e . . . rit of pre2i8inary in

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(4e Appe22ate Court aree! it4 +B)(A t4at in 2ine it4 t4e Ru2e of Court 5an!

t4i Court@ re2evant ru2in 6 t4e tipu2ation repetin venue in it #ea2er4ip

Aree8ent it4 +N$"A(ER !i! in trut4 2i8it t4e venue of a22 uit ariin t4ereun!er

on2y an! e2uive2y to :t4e proper ourt of Kueon City.: 7(4e Court a2o 4e2! t4at t4e

partiipation of +B)(A@ oune2 at t4e 4earin on t4e in+B)(A? 2i8ite! to t4e proper ourt of

Kueon City t4e venue of any o8p2aint fi2e! ariin fro8 t4e

!ea2er4ip aree8ent beteen . . . >t4e8?':

=?:in inorin t4e ru2e ett2e! in!hilippine Ban%ing #orporation vs.

Tensuan,9t4at @in t4e abene of ua2ifyin or retritive or!,

venue tipu2ation in a ontrat 4ou2! be oni!ere! 8ere2y a

aree8ent on a!!itiona2 foru8, not a 2i8itin venue to t4e

peifie! p2ae': an! in on2u!in, ontrariie, t4at t4e

aree8ent in t4e ae at bar :a t4e a8e a t4e aree8ent on

venue in t4e Gesmundoae,: an! t4erefore, t4e Gesmundoae

a ontro22in' an!

;?:in on2u!in, bae! o2e2y on t4e e2fJervin narration of . . .

>+B)(A t4at it? partiipation in t4e 4earin for t4e iuane ofa . . . pre2i8inary in

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(ria2 Court in t4e 8ornin of Danuary 11, 1993 an! a t4en infor8e! t4at 4e 4ou2!

roJea8ine +N$"A(ER@ itne, 4o 4a! tetifie! t4e !ay before, ai! oune2

!re attention to t4e 8otion to !i8i on t4e roun! of i8proper venue an! initent2y

atte8pte! to arue t4e 8atter an! 4ave it ru2e! upon at t4e ti8e' an! 4en t4e Court

8a!e non it intention >a? :to >reo2ve firt t4e? iue >of? t4e inb? oneuent2y it !eire to fort4it4 on2u!e t4eea8ination of t4e itne on t4e in

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)n t4e ot4er 4an!, beaue retritive tipu2ation are in !eroation of t4i enera2 po2iy,

t4e 2anuae of t4e partie 8ut be o 2ear an! ateoria2 a to 2eave no !oubt of t4eir

intention to 2i8it t4e p2ae or p2ae, or to fi p2ae ot4er t4an t4oe in!iate! in Ru2e 3,

for t4eir ation. (4i i eaier ai! t4an !one, 4oever, a an ea8ination of pree!ent

invo2vin venue ovenant i22 i88e!iate2y !i2oe.

$n at 2eat t4irteen >1;? ae, t4i Court ontrue! t4e venue tipu2ation invo2ve! a

8ere2y per8iive. (4ee areI

1.!olytrade #orporation v.Blanco, !ei!e! in 1969.13$n t4i ae, t4e venue tipu2ation

a a fo22oI

:(4e partie aree to ue an! be ue! in t4e Court of "ani2a.:

(4i Court ru2e! t4at u4 a proviion :!oe not pre2u!e t4e fi2in of uit in t4e

rei!ene of t4e p2aintiff or t4e !efen!ant. (4e p2ain 8eanin i t4at t4e partie 8ere2yonente! to be ue! in "ani2a. Kua2ifyin or retritive or! 4i4 ou2! in!iate t4at

"ani2a an! "ani2a a2one i t4e venue are tota22y abent t4erefro8. $t i8p2y i

per8iive. (4e partie o2e2y aree! to a!! t4e ourt of "ani2a a tribuna2 to 4i4

t4ey 8ay reort. (4ey !i! not aive t4eir ri4t to purue re8e!y in t4e ourt peifia22y

8entione! in etion =>b? of Ru2e 3.:

(4e!olytrade!otrine a reiterate! epre2y or i8p2iit2y in ubeuent ae,

nu8berin at 2eat ten >1?.

=./icolas v.0eparations #ommission, !ei!e! in 1975. 15$n t4i ae, t4e tipu2ation on

venue rea!I

: . . . >A?22 2ea2 ation ariin out of t4i ontrat . . . 8ay be brou4t in an!

ub8itte! to t4e

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(4e Court, aain itin!olytrade, tate! t4at t4e proviion :!oe not pre2u!e t4e fi2in

of uit in t4e rei!ene of p2aintiff or !efen!ant un!er etion =>b?, Ru2e 3, Ru2e of

Court, in t4e abene of ua2ifyin or retritive or! in t4e aree8ent 4i4 ou2!

in!iate t4at t4e p2ae na8e! i t4e on2y venue aree! upon by t4e partie. (4e

tipu2ation !i! not !eprive . . . >t4e affete! party? of 4i ri4t to purue re8e!y in t4e

ourt peifia22y 8entione! in etion =>b? of Ru2e 3, Ru2e of Court.0enuntiato nonpraesumitur.:

3.#apati v.2campo, !ei!e! in 19H=. 17$n t4i ae, t4e proviion of t4e ontrat

re2ative to venue a a fo22oI

: . . . >A?22 ation ariin out, or re2atin to t4i ontrat 8ay be intitute! in t4e

Court of Firt $ntane of t4e City of Naa.:

(4e Court ru2e! t4at t4e partie :!i! not aree to fi2e t4eir uit o2e2y an! e2uive2y

it4 t4e Court of Firt $ntane of Naa': t4ey :8ere2y aree! to ub8it t4eir !ipute tot4e ai! ourt it4out aivin t4eir ri4t to ee reoure in t4e ourt peifia22y

in!iate! in etion = >b?, Ru2e 3 of t4e Ru2e of Court.:

5.3estern (inolco v.#ourt of Appeals, !ei!e! in 19HH. 1H-ere, t4e proviion

overnin venue rea!I

:(4e partie tipu2ate t4at t4e venue of t4e ation referre! to in etion 1=.1

4a22 be in t4e City of "ani2a.:

(4e ourt retate! t4e !otrine t4at a tipu2ation in a ontrat fiin a !efinite p2ae for

t4e intitution of an ation ariin in onnetion t4ereit4, !oe not or!inari2y upere!e

t4e enera2 ru2e et out in Ru2e 3, an! 4ou2! be ontrue! 8ere2y a an aree8ent on an

a!!itiona2 foru8, not a 2i8itin venue to t4e peifie! p2ae.

6.(oles v.4ntermediate Appellate #ourt, !ei!e! in 19H9. 19$n t4i proee!in, t4e

a2e $nvoie of a 2inotype 8a4ine tate! t4at t4e proper venue 4ou2! be $2oi2o.

(4i Court 4e2! t4at u4 an invoie a not t4e ontrat of a2e of t4e 2inotype 8a4ine

in uetion' oneuent2y t4e printe! proviion of t4e invoie ou2! not 4ave beeninten!e! by t4e partie to overn t4e a2e of t4e 8a4ine, epeia22y ine ai! invoie

a ue! for ot4er type of tranation. (4i Court ai!I :$t i obviou t4at a venue

tipu2ation, in or!er to bin! t4e partie, 8ut 4ave been inte22ient2y an! !e2iberate2y

inten!e! by t4e8 to e2u!e t4eir ae fro8 t4e re2e8entary ru2e on venue. 0et, even

u4 inten!e! variane 8ay not neeari2y be iven

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annot be 2ai! in any p2ae ot4er t4an t4at aree! upon by t4e partie, an! in ontrat of

a!4eion.:

7.'ong%ong and Shanghai Ban%ing #orp.v.Sherman, !ei!e! in 19H9. =-ere t4e

tipu2ation on venue rea!I

: . . . >(?4i uarantee an! a22 ri4t, ob2iation an! 2iabi2itie ariin 4ereun!er

4a22 be ontrue! an! !eter8ine! un!er an! 8ay be enfore! in aor!ane

it4 t4e 2a of t4e Repub2i of inapore. &e 4ereby aree t4at t4e Court ininapore 4a22 4ave

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1.!hilippine Ban%ing #orporation v.'on.Salvador Tensuan, etc., #ircle Financial

#orporation, et al., !ei!e! in 199;. =;-ere, t4e tipu2ation on venue a ontaine! in

pro8iory note an! rea! a fo22oI

:$&e 4ereby epre2y ub8it to t4e an en banc!eiion 2ater in ti8e t4anBautista? an! ubeuent ae

reiteratin!olytrade,Bautistaan!'oechst !hilippines4ave been ren!ere! obo2ete by

t4e!olytrade2ine of ae.:

11.!hilippine Ban%ing #orporation v.'on.Salvador Tensuan, etc., Brinell (etal 3or%s

#orp., et al., !ei!e! in 1993I =3$n t4i ae t4e ub

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appear to be no va2i! an! free aiver of t4e venue fie! by t4e Ru2e of Court.

-oever, in ae 4ere bot4 partie free2y an! vo2untari2y aree on a peifie! p2ae to

be t4e venue of ation, if any, beteen t4e8, t4en t4e on2y oni!eration 4ou2! be

4et4er t4e aiver >of t4e venue fie! by t4e Ru2e of Court? i aaint pub2i po2iy an!

4et4er t4e partie ou2! uffer, by reaon of u4 aiver, un!ue 4ar!4ip an!

inonveniene' ot4erie, u4 aiver of venue 4ou2! be up4e2! a bin!in on t4epartie. (4e aiver of venue in u4 ae i antione! by t4e ru2e on a Con!ition 13?

:. . . t4at any an! a22 ation ariin out or t4e on!ition an! proviion of t4itiet, irrepetive of 4ere it i iue!, 4a22 be fi2e! in t4e o8petent ourt in

t4e City of Cebu:

a !e2are! unenforeab2e, bein ubverive of pub2i po2iy. (4e Court

ep2aine! t4at t4e p4i2oop4y on tranfer of venue of ation i t4e onveniene of t4e

p2aintiff a e22 a 4i itnee an! to pro8ote t4e en! of

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: . . . >*?enue for a22 uit, 4et4er for brea4 4ereof or !a8ae or any aue

beteen t4e %E)R an! %EEE, an! peron 2ai8in un!er ea4, . . . >4a22

be? t4e ourt of appropriate t?4e 2anuae ue! 2eave no roo8 for interpretation. $t 2ear2y

evine t4e partie@ intent to 2i8it to t4e @ourt of appropriate b?.:

;.'oechst !hilippines, 4nc.v.Torres, =9!ei!e! 8u4 ear2ier, in 197H, invo2ve! a

triin2y i8i2ar tipu2ation, 4i4 rea!I

: . . . >$?n ae of any 2itiation ariin out of t4i aree8ent, t4e venue of any

ation 4a22 be in t4e o8petent ourt of t4e /rovine of Ria2.:

(4i Court 4e2!I :No furt4er tipu2ation are neeary to e2iit t4e t4ou4t t4at bot4

partie aree! t4at any ation by eit4er of t4e8 ou2! be fi2e! on2y in t4e o8petent

ourt of Ria2 provine e2uive2y.:

3.5illanueva v.(os6ueda, !ei!e! in 19H=. ;$n t4i ae, it a tipu2ate! t4at if t4e

2eor vio2ate! t4e ontrat of 2eae 4e ou2! be ue! in "ani2a, 4i2e if it a t4e 2eee

4o vio2ate! t4e ontrat, t4e 2eee ou2! be ue! in "aanto2, /a8pana. (4i Court

4e2! t4at t4ere a an aree8ent onernin venue of ation an! t4e partie ere boun!

by t4eir aree8ent. :(4e aree8ent a to venue a not per8iive but 8an!atory.:

5.Ar6uero v.Floo, !ei!e! in 19HH. ;1(4e on!ition repetin venue t4at any

ation aaint RC/$ re2ative to t4e tran8itta2 of a te2era8 8ut be brou4t in t4e ourt

of Kueon City a2one a printe! 2ear2y in t4e upper front portion of t4e for8 to be

fi22e! in by t4e en!er. (4i Court 4e2! t4at ine neit4er party reerve! t4e ri4t to

4ooe t4e venue of ation a fie! by etion = [b], Ru2e 3, a i uua22y !one if t4epartie 8ean to retain t4e ri4t of e2etion o rante! by Ru2e 3, it an reaonab2y be

inferre! t4at t4e partie inten!e! to !efinite2y fi t4e venue of ation, in onnetion it4

t4e ritten ontrat ue! upon, in t4e ourt of Kueon City on2y.

An ana2yi of t4ee pree!ent reaffir8 an! e8p4aie t4e oun!ne of t4e!olytrade

prinip2e. )f t4e eene i t4e aertain8ent of t4e partie@ intention in t4eir aree8ent

overnin t4e venue of ation beteen t4e8. (4at aertain8ent 8ut be !one eepin

in 8in! t4at onveniene i t4e foun!ation of venue reu2ation, an! t4at t4at

ontrution 4ou2! be a!opte! 4i4 8ot on!ue t4ereto. -ene, t4e invariab2e

ontrution p2ae! on venue tipu2ation i t4at t4ey !o not neate but 8ere2y

o8p2e8ent or a!! to t4e o!a2 tan!ar! of Ru2e 3 of t4e Ru2e of Court. $n ot4er or!,

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8/13/2019 2. G.R. No. 119657. February 7%2c 1997

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un2e t4e partie 8ae very 2ear, by e8p2oyin ateoria2 an! uitab2y 2i8itin

2anuae, t4at t4ey i4 t4e venue of ation beteen t4e8 to be 2ai! on2y an!

e2uive2y at a !efinite p2ae, an! to !irear! t4e preription of Ru2e 3, aree8ent on

venue are not to be rear!e! a 8an!atory or retritive, but 8ere2y per8iive, or

o8p2e8entary of ai! ru2e. (4e fat t4at in t4eir aree8ent t4e partie peify on2y one

of t4e venue 8entione! in Ru2e 3, or fi a p2ae for t4eir ation !ifferent fro8 t4oepeifie! by ai! ru2e, !oe not, it4out 8ore, uffie to 4araterie t4e aree8ent a a

retritive one. (4ere 8ut, to repeat, be ao8panyin 2anuae 2ear2y an!

ateoria22y eprein t4eir purpoe an! !ein t4at ation beteen t4e8 be 2itiate!

on2y at t4e p2ae na8e! by t4e8, ;=rear!2e of t4e enera2 preept of Ru2e 3' an! any

!oubt or unertainty a to t4e partie@ intention 8ut be reo2ve! aaint ivin t4eir

aree8ent a retritive or 8an!atory apet. Any ot4er ru2e ou2! per8it of in!ivi!ua2,

ub

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a8ount oni!erab2y in ee of /=,., i aure!2y it4in t4e

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$f, on t4e ot4er 4an!, u4 venue tipu2ation ontain ua2ifyin, retritive, 8an!atory or

e2uionary ter8 in!iatin t4at t4e a!!itiona2 foru8 4a22 be t4e una2terab2e venue of

propetive uit e8 contractubeteen t4e8, t4en u4 aree8ent 4a22 neeari2y be

oberve! to t4e e2uion of an! 4a22 bar reort to anot4er foru8 4i4 ou2! ot4erie

4ave been t4e re2e8entary preription of venue for t4e ae.

)f t4e 2atter enre are t4e ue of u4 ua2ifyin or! 2ie e8clusively, only, solely,

limited to, in no other place, to the e8clusion of, or ot4er ter8 in!iative of a 2ear an!ateoria2 intent to 2ay t4e venue at a peifi p2ae an! t4ereby aivin t4e enera2

proviion of t4e Ru2e or t4e 2a on venue or proribin t4e fi2in of uit in any ot4er

o8petent ourt.

(4ee ui!e2ine 4ou2! aor!in2y be !ran fro8 t4e !eiion in t4i ae, vi..I >1? t4e

aree8ent on venue 4a22, in t4e firt intane, be nor8a22y oni!ere! a 8ere2y

per8iive' >=? to be retritive, t4e 2anuae or ter8ino2oy e8p2oye! in t4e tipu2ation

8ut be uneuivoa2 an! a!8it of no ontrary or !oubtfu2 interpretation' >;? in ae ofirreoni2ab2e !oubt, t4e venue proviion 4a22 be !ee8e! to be per8iive' an! >3? in

aertainin t4e intent in t4at proviion 4i4 reaonab2y a!8it of 8ore t4an one

8eanin, t4e ontrution 4ou2! be a!opte! 4i4 8ot on!ue to t4e onveniene oft4e partie.

$n a!!ition to t4e foreoin, t4e riter uet, by ay of aveat, t4e 8atter of a!4eion

ontrat an! retrition of pub2i po2iy a ua2ifyin or !e2i8itin t4e app2iation of

t4e 8an!atory effet of retritive venue tipu2ation.

$8p2iit in an aree8ent on venue, a in any ontrat or it ter8, i t4e 2ea2 i8perative

t4at t4e onent of t4e partie t4ereto ere vo2untari2y, free2y an! inte22ient2y iven.

No, a ep2aine! by a o88entator, a ontrat of a!4eion i one in 4i4 a party

i8poe a rea!yJ8a!e for8 of ontrat 4i4 t4e ot4er party 8ay aept or re

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(4i on2uion ou2! not ee8 to uare it4 4at t4i Court tate! in -ua #hee Gan

vs.Law 9nion and 0oc% 4nsurance #o., Ltd. =$t a t4ere pointe! out t4at by reaon of

t4e e2uive ontro2 by one party in a ontrat of a!4eion over t4e ter8 an!

p4raeo2oy of t4e ontrat, any a8biuity 8ut be 4e2! trit2y aaint t4e one 4o

aue! it to be prepare! an! 2ibera22y in favor of t4e ot4er party. $n fat, t4i ru2e 4a

ine beo8e a tatutory proviion. ;

By ana2oy, t4ee pronoune8ent in t4e aforetate! ae ou2! invei4 aaint a rii!app2iation of an e2uive venue tipu2ation 4ere 4at i invo2ve! i a ontrat of

a!4eion, to itI

:. . . (4e ourt annot inore t4at noa!ay 8onopo2ie, arte2 an!

onentration of apita2, en!oe! it4 over4e28in eono8i poer,

8anae to i8poe upon partie !ea2in it4 t4e8 unnin2y prepare!

@aree8ent@ t4at t4e eaer party 8ay not 4ane one 4it, 4i partiipation int4e @aree8ent@ bein re!ue! to t4e a2ternative to tae it or 2eave it, 2abe22e! . . .

@ontrat by a!4erene@ >contracts dadhesion?, in ontrat to t4oe entere! into

by partie barainin on an eua2 footin, u4 ontrat . . . obviou2y a22 forreater tritne an! vii2ane on t4e part of ourt of r?y: >aut4oritie o8itte!?.

$ repetfu22y ub8it, t4erefore, t4at 4i2e t4e enuniate! ru2e on retritive venue

tipu2ation 4ou2! or!inari2y be repete!, a reater aution on a aeJtoJae bai 8utbe a!opte! by t4e ourt 4ere u4 tipu2ation i ontaine! in a ontrat of a!4eion.

Not on2y 4ou2! t4ey oni!er t4e !ia!vantae! poition of t4e a!4erent but, 8ore

i8portant2y, t4e fat t4at t4e raison detrefor ru2e of venue i to affor! !ue proe,reater onveniene an! 8ore rea!y ae to t4e ourt in favor of t4e a!4erin

ontratin party. !a

$ a2o ub8it t4at t4e ru2e on retritive venue tipu2ation 4ou2! not app2y 4ere it

ou2! be vio2ative of a ett2e! an! i8portant po2iy of t4e tate. (4u, for intane, in t4e

ite! ae of'ong%ong and Shanghai Ban%ing #orporation vs.Sherman,3ai!e fro8

t4e aree8ent t4at t4e ontrat 4ou2! be !eter8ine! in aor!ane it4 t4e 2a of

inapore, t4at ontrat a2o ontaine! t4i proviionI :&e 4ereby aree t4at t4e Court

in inapore 4a22 4ave

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