The main contract is separate from an arbitration agreement, but it is related to it by the parties’ intention to resolve disputes through arbitration.
Separability
The arbitration agreement is governed by a different law. This means that the arbitration agreement will remain in effect even if the main contract is not.
Contractual origin
The arbitration agreement is a contract on its own, so it must meet all the requirements of a valid contract.
Jurisdictional effects
The arbitration agreement gives the arbitral tribunal the power to settle disputes that would normally go to state courts.
Dispute resolution
The arbitration agreement is used when a dispute arises between the parties to the contract. The parties agree to waive their right to sue and instead settle the dispute through arbitration.
Importance
The arbitration agreement is important because it ensures that the parties’ agreed-upon procedure for resolving disputes remains in effect even if the main contract is not.
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