Are there any defenses to an arbitration agreement?

Yes, there are defenses to an arbitration agreement in Georgia. An arbitration agreement is a contract between two or more parties to resolve a dispute through the use of an independent third-party arbitrator instead of a court trial. This type of dispute resolution is usually less expensive and less time consuming than litigation in a court of law. In Georgia, there are a few defenses that may be used to challenge an arbitration agreement. First, a court may invalidate the contract if one of the parties was under duress or coercion when signing the agreement. This means that one or more of the parties was pressured or threatened into signing the contract. Second, a contract may be found to be unconscionable if it is completely one-sided, meaning that it gives one party all the power and offers no protections for the other. Third, a contract may be found to be overly vague or ambiguous. This means that the terms of the contract are not clear or specific enough to be enforceable. If an arbitration agreement is brought before a court and one of the defenses above is successfully established, the court may invalidate the contract. This means that the parties will have to find an alternate solution to the dispute, either through further negotiation or, if necessary, filing suit in a court of law.

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