INVALIDITY OF ARBITRATION AGREEMENT

Commercial arbitration is a dispute resolution method agreed upon by the parties and commonly chosen by businesses, offering advantages such as expediency in procedures, independence from contracts, and the general enforceability of rulings. However, in some cases, parties may be unable to resolve disputes through arbitration due to the invalidity of arbitration agreement.

The parties have the right to agree to resolve disputes by arbitration

Parties have the right to agree to resolve disputes through arbitration. Arbitrators will resolve the dispute based on the agreement of the parties and within their jurisdiction, in accordance with legal provisions.

In cases where the parties have already agreed to arbitration but one party files a lawsuit in court, the court must decline jurisdiction. The invalidity of arbitration agreement is one of the grounds for the court to refuse jurisdiction over the dispute when Arbitration has been agreed upon.

Determination on the invalidity of arbitration agreement

An invalid arbitration agreement is an arbitration agreement in one of the following cases:

The invalidity of arbitration agreement is as the disputes arise in areas not under the jurisdiction of the arbitration

If the dispute between the two parties does not fall into the following fields, the dispute will not be able to be referred to arbitration to resolve:

– Disputes between the parties arising from commercial activities;

– Disputes arise between parties in which at least one party conducts commercial activities;

– Other disputes between the parties as provided for by law shall be resolved by Arbitration.

The invalidity of arbitration agreement is as the person who establishes the arbitration agreement is not competent in accordance with the law

A person is considered to have jurisdiction over the arbitration agreement if it does not fall into the following cases:

– The person who established the arbitration agreement is not the legal representative;

– The arbitration agreement maker is not a legally authorized person;

– The arbitration agreement maker is a person who is legally authorized but is beyond the scope of authorization.

However, if the arbitration agreement is established by a person lacking authority, but during the establishment or arbitration proceedings, the person with authority who established the arbitration agreement accepts it or is aware of it without objection, then the arbitration agreement shall not be invalid.

The invalidity of arbitration agreement is as the person establishing the arbitration agreement do not have legal capacity

The individuals identified as lacking legal capacity include minors, individuals who have lost legal capacity, or those who are restricted in legal capacity.

In this case, the evidence includes documents proving the date of birth or a conclusion from the competent authority or a court decision determining that the person is a minor, lacks legal capacity, or has restricted legal capacity.

The invalidity of arbitration agreement is as the form of the Arbitration agreement is invalid

The form of the arbitration agreement is not in accordance with the law:

– Arbitration clause in the contract;

– Separate arbitration agreement;

– Agreement established through exchanges between the parties via telegram, fax, telex, email, and other forms as regulated by the law;

– Agreement established through the exchange of written information between the parties;

– Agreement recorded by lawyers, notaries, or authorized organizations in writing at the request of the parties;

– In transactions where the parties refer to a document indicating the arbitration agreement such as contracts, documents, company bylaws, and similar documents;

– Through exchanges regarding the claim and self-defense brief where the existence of the agreement is presented by one party and not denied by the other.

The invalidity of arbitration agreement when one of the parties is deceived, threatened, or coerced during the establishment of the arbitration agreement

Where:

– Deception refers to the intentional act of one party or a third party to mislead the other party regarding the subject, nature, or content of the agreement, leading to the establishment of the agreement based on misunderstanding.

– Threat refers to the intentional act of one party or a third party to compel the other party to enter into the agreement to avoid harm to their life, health, dignity, reputation, integrity, property, or that of their parents, spouse, or children.

The invalidity of arbitration agreement for violating legal prohibitions

Where:

– Legal prohibitions refer to provisions of the law that prohibit certain actions.

– Social ethics are the common behavioral standards among individuals in society, recognized and respected by the community.

>> JURISDICTION OF COMMERCIAL ARBITRATION https://linconlaw.vn/jurisdiction-of-commercial-arbitration/

>> ISSUANCE PROCEDURES FOR SPORT FENCING BUSINESS LICENSE https://linconlaw.vn/issuance-procedures-for-sport-fencing-business-license/