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Validity claims and arbitration

On Behalf of | May 18, 2022 | Contract Disputes

Invalid contracts can be resolved using the arbitration method. However, if the arbitration itself is unsatisfactory, the decision cannot be reversed. There are federal laws that affect how the validity claims of written agreements are handled in New York.

Protecting the validity of an agreement

In arbitration, the final decision is legally binding. Both parties are advised to consult attorneys to provide the best advice. Once the decision is made, any person who goes against it can be sued and forced into court.

Despite the legal rules set into place, some people claim that challenging the validity of arbitration can result in it being overturned. However, this method is not possible because the arbitrator’s decision cannot be reversed.

The law for determining the arbitration

The Federal Arbitration Act determines the extent to which people can argue, decide and challenge arbitration cases. Its purpose is to ensure that agreements made to resolve disputes over a contract are “valid, irrevocable, and enforceable.”

The FAA covers all types of employment contracts, except those made for seamen, railroad workers and interstate or international commerce workers. Despite the regulations of powerful laws, the coverage of the FAA is not absolute, and lawyers have challenged it in court.

Arbitrators are often trustworthy enough to enforce their duties and powers on other people’s lives. Their decisions are regulated by law and finalized in courts. Individuals have tried to challenge the validity of their contracts to reverse their arbitration decisions. Only the arbitrators and court systems can decide whether or not to enforce an arbitration provision.