Tennessee The Elements of an Arbitration Provision

• Category: Contracts - Clauses
• State: Multi-State
• Control #: US-ND0807
• Format: Word; PDF; Rich Text

Description

This form provides boilerplate contract clauses that outline requirements for arbitration under a contract. Several different language options representing various arbitration options and levels of restriction are included to suit individual needs and circumstances.

Tennessee: The Elements of an Arbitration Provision An arbitration provision is a clause often included in contracts to resolve legal disputes outside the traditional court system. In Tennessee, the elements of an arbitration provision follow specific guidelines and requirements. This detailed description will provide an overview of what Tennessee's arbitration provision entails, highlighting relevant keywords and different types if applicable. 1. Introduction to Arbitration: Arbitration is a dispute resolution process where parties involved agree to submit their claims to one or more neutral arbitrators, who act as private judges. This alternative to litigation offers a more efficient and cost-effective approach to resolving legal conflicts. 2. Mandatory vs. Voluntary Arbitration: In Tennessee, arbitration provisions could be either mandatory or voluntary. Mandatory arbitration provisions require parties to submit their disputes to arbitration, removing the option to litigate. On the other hand, voluntary arbitration provisions provide parties with a choice to opt for arbitration or pursue litigation. 3. Enforceability: Arbitration provisions in Tennessee must meet certain standards to be enforceable. Key elements that enhance enforceability include clear and unambiguous language, mutual consent of the parties, and a written agreement incorporating the provision. 4. Scope and Timing: The arbitration provision should clearly define the scope of disputes it covers. Whether it covers all disputes arising out of the underlying contract or only specific types, such as monetary claims or contract interpretation, the provision must clearly state the scope of arbitration. Additionally, it should specify the timing for commencing arbitration proceedings, including any notice periods or limitations. 5. Selection of Arbitrators: Tennessee allows parties to either select arbitrators by mutual agreement or defer the appointment to a recognized arbitration institution, such as the American Arbitration Association (AAA). In cases where the provision is silent, Tennessee law provides default procedures for arbitrator selection. 6. Governing Law: The arbitration provision should specify which laws govern the arbitration process. In Tennessee, parties commonly choose Tennessee state law to govern their arbitration agreements, but they may also opt for other jurisdictions or even international laws if the contract involves non-Tennessee parties. 7. Judicial Review: Tennessee law allows for limited judicial review of arbitration awards to ensure fairness and prevent misconduct. The provision should outline the grounds on which a party can seek judicial intervention, generally including fraud, corruption, arbitrator bias, or exceeding the arbitrator's authority. 8. Severability: Tennessee follows the principle of severability, which states that if a provision of the contract is found unenforceable or invalid, it does not affect the validity of the entire arbitration provision. This ensures that the arbitration provision remains enforceable unless explicitly declared invalid by a court. In conclusion, Tennessee's arbitration provision consists of various elements that must be carefully crafted to ensure enforceability and clarity. By incorporating the relevant keywords and differentiating between mandatory and voluntary arbitration provisions, this description provides a comprehensive understanding of Tennessee's approach to arbitration.