Asked by Heather Hernandez on Jun 27, 2024

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What is a provision in a contract mandating that all disputes arising under the contract be settled by arbitration called?

A) A binding arbitration clause
B) A non-compete agreement
C) A forum non conveniens clause
D) An in rem clause
E) A quasi in rem clause

Binding Arbitration Clause

A contract provision mandating that all disputes arising under the contract must be settled by arbitration.

Disputes

Conflicts or arguments between parties that may require resolution through negotiation or legal means.

Contract

A legally binding agreement between two or more parties, enforceable by law.

  • Acquire knowledge on the legal framework and implications surrounding arbitration agreements and their validity in law.
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Verified Answer

BG
Britni GurganusJun 27, 2024
Final Answer :
A
Explanation :
The primary method of securing arbitration is through a binding arbitration clause,a provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration.The clause also typically states how the arbitrator will be selected.If parties have a binding arbitration agreement,the parties must resolve the dispute through arbitration.Both federal and state courts must uphold agreements to arbitrate.