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You cannot sue or be sued after you sign an arbitration agreement. If the original contract included an arbitration clause, it means that both parties agreed not to pursue legal action in court against the other. Any disputes that arise will have to be settled through arbitration.
Arbitrationan introduction to the key features of arbitrationParty autonomy and procedural flexibility.Choice of seat or forum.Choice of decision makersthe arbitral tribunal.Privity and joinder.Separability of the arbitration agreement.Confidentiality and privacy in arbitration.More items...
"Arbitration agreement" is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.
Compelling ArbitrationBy initiating litigation, a party waives its right to arbitration. Upon being served with a lawsuit, a party seeking to enforce its right to arbitrate should promptly file a motion to compel arbitration and stay litigation17 or a motion to dismiss.
Thus, in order for the Arbitration Clause to be enforceable, it must be clear that the parties mutually agreed to Arbitration as an alternate forum, that the parties are affirmatively waiving any right to proceed in State Court, and finally, that the parties are waiving a right to a Trial by jury.
To make the agreement appear more fair, some companies include a provision that allows you to opt out of the arbitration clause by sending them a letter, usually within a short time after you enter the contract.
The arbitration agreement is valid only if signed by parties with full civil act capacity, and such parties must be competent, specifically: A person with full civil act capacity is at least 18 years old and does not lose or limit her/his civil act capacity or difficulties in perception, mastery of acts.
To make the agreement appear more fair, some companies include a provision that allows you to opt out of the arbitration clause by sending them a letter, usually within a short time after you enter the contract.
The Federal Arbitration Act provides that the enforceability of an arbitration agreement, is determined using generally applicable contract defenses, such as fraud, duress, or unconscionability. Under California law, a contract signed under economic duress may be rescinded.
If arbitration is ineffective and non-binding, any party or parties are at liberty to appeal this award without requiring any reasonable ground to appeal. But if the Arbitration is binding, then the party or the parties need a concrete reason to challenge the award in court, just as in the case of jury award.