Contract breach can result in a lawsuit in a State or Federal court. However, that can lack if the contract is written and has a clause that mandates all disputes to be resolved through the arbitration process (Pacini, Andrews & Hillison, 2002). There are different circumstances in which the clauses are enforceable. To begin with, the court decides whether the parties agreed to arbitrate. Besides, no party is required to submit to arbitration any dispute if there was no prior agreement for the submission of arbitration(Shevchuk & Strebkov, 2017). Under the FAA, any doubts that concern the scope of the issues to be arbitrated are resolved in favor of arbitration regardless of whether the problem is about the construction of the contract language, delay or an allegation of waiver (Smith, 2007). Therefore, arbitration occurs if there was a prior agreement between the parties involved in the contract.
Different factors are taken into consideration by a court in deciding if a case is to go to arbitration. The legal tenets that are used in New York stresses for an action to be directed to arbitration a court needs to determine; if the parties had prior agreement to arbitrate; the scope of the agreement (Shevchuk & Strebkov, 2017); if there are federal statutory claims and if the Congress intended the claims to be non-arbitral; and whether some of the claims are subject to arbitration. In light of this, the arbitration clause will be enforceable since the parties had reached an agreement. The agreement occurred when the buyers had accepted the terms and conditions of the firm since they were transacting with them (Smith, 2007). In addition, the contract elements were present, and it implies that the contract was valid.
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References
Pacini, C., Andrews, C., & Hillison, W. (2002). To agree or not to agree: Legal issues in online contracting. Business Horizons , 45 (1), 43-52. doi: 10.1016/s0007-6813(02)80009-x
Shevchuk, A., & Strebkov, D. (2017). Safeguards against Opportunism in Freelance Contracting on the Internet. British Journal Of Industrial Relations , 56 (2), 342-369. doi: 10.1111/bjir.12283
Smith, G. J. (Ed.). (2007). Internet law and regulation . Sweet & Maxwell.
