416 NEWSLETTER 2021 “international” used here includes the element of foreignness. The circumstances under which settlement agreements are considered of international nature are set out in art. 1(1) of the Singapore Convention.4 • Commercial nature: An international settlement agreement must be an agreement resolving commercial disputes. The definition of ‘commercial’ is not given in the Convention. • Suitable to mediation: Since there is no clear definition in the Singapore Convention, the qualification on this subject will be made according to the law of the country (lex fori) where the execution of the settlement agreement is requested. However, the Singapore Convention expressly excludes settlement agreements which are concluded to resolve a dispute arising from transactions engaged in by one of the parties (a consumer) for personal, family or household purposes, or relating to family, inheritance or employment law. Art. 5 of the Singapore Convention provides the reasons for refusal of enforcement of a settlement agreement. The existence of these reasons does not necessitate the rejection of the execution of the settlement agreement; but rather makes the rejection of the request possible: • Incapacity: If a party to the settlement agreement is incapable of making this agreement, the execution of the agreement may be refused. • Invalidity of settlement agreements: If a settlement agreement is void, ineffective, or impossible to implement, the enforcement request may be rejected. This provision is the 4 Singapore Convention art. 1(1); (a) At least two parties to the settlement agreement have their places of business in different States; or (b) The State in which the parties to the settlement agreement have their places of business is different from either: (i) The State in which a substantial part of the obligations under the settlement agreement is performed; or (ii) The State with which the subject matter of the settlement agreement is most closely connected.
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