R1 International Pte Ltd v Lonstroff AG [2014] SGCA 56 (“R1 International”) is significant for it affirms the position that an arbitration clause may be incorporated into a contract subsequent to its formation if there was a prior understanding to that effect. In its decision, the Court of Appeal overruled the decision of the trial judge and held that an arbitration clause stating that arbitration is to be held in Singapore was incorporated subsequent to the formation of the contract. An analysis of the case is worthwhile, since the court’s view was that the arbitration term was incorporated as a result of one party’s silence. On that note, it is suggested that the court’s decision can be better analysed on the basis of the party’s conduct instead of his silence.