Asked by Derek Vowles on Jul 02, 2024
Verified
Sofia is considering Daniel as an independent contractor to do clean up and maintenance for her building, which has several tenants. She is aware that Daniel has sued some previous building owners. He does a good job, however, and she would like to hire him. Daniel has agreed to sign an arbitration agreement. What should Sofia do to have a binding agreement that will be enforced?
Binding Agreement
A legally enforceable contract or agreement between two or more parties with clearly defined terms.
Arbitration Agreement
A contract in which parties agree to resolve disputes outside of court through arbitration.
Independent Contractor
A person or organization hired to execute tasks for or deliver services to another organization without being an employee.
- Ascertain methods for efficiently creating and embedding arbitration provisions in agreements to guarantee they are enforceable and clear.
Verified Answer
(1) Be clear and unmistakable in what is covered within the arbitration agreement.
(2) Provide for a bilateral arbitration clause.
(3) State explicitly which party will pay arbitration fees and make sure that it will not cost Daniel more to arbitrate than it would have cost to litigate.
(4) Specify how the arbitrator will be selected.
(5) Spell out the costs associated with the arbitration.
(6) Avoid limitations on remedies.
(7) Provide that the arbitration will be held in a convenient and close area.
Learning Objectives
- Ascertain methods for efficiently creating and embedding arbitration provisions in agreements to guarantee they are enforceable and clear.
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