Arbitration Clauses Aren’t Always Enforceable
When drafting an arbitration clause in a contract, one must be very mindful of certain particulars to ensure the arbitration clause is enforceable. One must also know whether a contract will be governed under the state or federal arbitration act. For example, if a contract is found to be governed under state law, notice that the contract is subject to arbitration must be typed in underlined capital letters, or rubber-stamped prominently, on the first page of the contract. If these requirements are not met, then the arbitration provision of the contract may be unenforceable. Because of nuances such as these, it is usually prudent to have an attorney draft or review any significant contracts before you enter into them. Additionally, if a dispute arises regarding a contract, it is often prudent to have an attorney review the situation and advise you of your rights.
If you need help with a business or contract matter in Charleston, SC, our Charleston business lawyers at Futeral & Nelson, LLC can help. Contact us today to schedule a consultation.
