Arbitration Agreement

An arbitration agreement is a legally binding contract that offers an alternate dispute resolution between two parties or more. Arbitration agreements provide an alternative to civil court litigation. Parties sign an arbitration agreement and enter into a process known as arbitration if a dispute arises.

The purpose of an arbitration agreement is that the dispute process is faster and more affordable than litigation. Cases are less formally presented than legal proceedings as well.

Arbitration agreements are usually signed at the beginning of a business relationship – long before there’s a disagreement. An arbitration clause will typically say that all disputes arising under the larger contract will be submitted to a binding arbitration. Sometimes a contract will say that only certain disputes will be arbitrated others will not.

Arbitral agreement’s severability, separability, and autonomy principles preclude the legality of an agreement from being impacted by the validity of another agreement. The two accords may, however, coexist. The existence of such a concept does not invalidate the importance of the other principles listed in the contract but rather adds to them. As a result, it is crucial when it comes to resolving conflicts involving contractual agreements at large.