As businesses seek to protect their interests, arbitration agreements have become increasingly common. These agreements stipulate that any disputes that arise between the parties will be resolved through arbitration, rather than through the court system. However, in some cases, these agreements can be declared void for uncertainty.
What does it mean for an arbitration agreement to be void for uncertainty? Quite simply, it means that the agreement is not clear enough for the parties to understand what they are agreeing to. For example, an arbitration agreement might fail to specify the rules that will govern the arbitration process, or it might not identify the scope of the disputes that will be subject to arbitration.
If an arbitration agreement is declared void for uncertainty, the parties will be left without any agreement to resolve their disputes. This can lead to significant delays and expenses as the parties try to resolve their issues through the court system.
To avoid having your arbitration agreement declared void for uncertainty, it is important to ensure that the agreement is clear and specific. Here are a few tips:
1. Identify the arbitrator(s) who will hear the dispute. It is important to specify who will be hearing the dispute and what their qualifications are.
2. Clearly define the scope of disputes that will be subject to arbitration. Will all disputes between the parties be subject to arbitration, or will only certain types of disputes be subject to arbitration?
3. Specify the rules that will govern the arbitration process. The agreement should specify what rules will govern the arbitration process and how those rules will be enforced.
4. Determine the location of the arbitration. The agreement should specify where the arbitration will take place and whether any special provisions will apply.
By following these tips, you can increase the chances that your arbitration agreement will be valid and enforceable. Remember, the goal of any arbitration agreement is to provide a clear and efficient method for resolving disputes between the parties. If your agreement is vague or uncertain, it is unlikely to serve that purpose.