Can You Change Your Mind About Arbitration?
What happens if one of you decides not to arbitrate after it is already in the contract? Find out in this Arbitration Espresso!
Arbitration is a binding agreement for you and the other party to settle your dispute without going to court.
Once you or the other party agree to arbitration, you both have a legal obligation to go through with it. Agreeing to arbitrate usually is part of a written contract and is legally binding.
Agreeing to arbitrate is a legal commitment – you cannot change your mind on a whim.
If you and the other party have a contract that stipulates arbitration before court, you both must agree to these terms. However, as with any contract, there can be special grounds that exempt you from arbitration. If you can prove fraud or duress, you may use these as accepted reasons to change your mind about arbitration. Similarly, if both of you agree to change the contract by amending the arbitration clause, that is possible too.
What do you do if the other party backs out of arbitration? In that case, you may want to consult a lawyer who has a deep understanding of contract law.
Next time on Arbitration Espresso: to arbitrate or not to arbitrate, that is the question. Subscribe to our channel so you don’t miss the answer!