IS ARBITRATION AGREEMENT MANDATORY IN A CONTRACT?

The disputing parties have the right to bring the dispute to arbitration, but it must be agreed upon specifically. Therefore, the parties’ arbitration agreement depends on the terms they negotiate, and whether arbitration is mandatory in a contract or not is subject to the terms and conditions agreed upon by the parties.

Agreement on arbitration in a contract or crafting a separate arbitration agreement, the parties have right to choose.

Parties may agree to establish an arbitration agreement either as an arbitration clause within the contract or as a separate agreement. However, it’s important to note that the arbitration agreement must be established in writing.

Some forms of agreement that are also considered as established in writing include:

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

– Agreements established through exchange of information in written form between parties;

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

– In transactions where parties refer to a document that reflects the arbitration agreement such as contracts, documents, company articles of association, and similar documents;

– Through exchanges regarding claims and defenses where the existence of the agreement is evidenced by one party’s assertion and the other party’s failure to deny.

Determining the validity of arbitration agreement

– In cases where multiple arbitration agreements are established for the same dispute, the arbitration agreement established last in time shall prevail.

– In cases where the arbitration agreement’s content is unclear and subject to various interpretations, the provisions of the Civil Code shall apply for interpretation.

– When there is a transfer of rights or obligations arising from a transaction or contract, and the parties to that transaction or contract have legally established an arbitration agreement, the arbitration agreement in the transaction or contract remains effective for both the transferring and receiving parties, except when otherwise agreed.

– The consolidation of multiple legal relationships in dispute resolution within the same lawsuit is conducted in the following cases:

+ Parties agree to consolidate multiple legal relationships in dispute resolution within the same lawsuit;

+ The arbitration procedural rules permit the consolidation of multiple legal relationships in dispute resolution within the same lawsuit.

The arbitration agreement, whether included within a contract or established separately, maintains its independent nature

The arbitration agreement, whether established within a contract or separately, remains entirely independent of the contract itself.

Modifying, extending, terminating, rendering void, or rendering a contract impossible to perform does not affect the validity of the arbitration agreement.

>> LEASE PURCHASE OF OFF-PLAN CONSTRUCTION WORK https://linconlaw.vn/lease-purchase-of-off-plan-construction-work/

>> CONDITIONS FOR DISPUTES SETTLEMENT BY ARBITRATION https://linconlaw.vn/conditions-for-disputes-settlement-by-arbitration/