Are there any defenses to an arbitration agreement?

Yes, there are defenses to an arbitration agreement in Nevada. Generally, defenses to an arbitration agreement include fraud, duress, unconscionability, or lack of consideration. Fraud is a defense to an arbitration agreement if the party seeking to avoid arbitration can show that the other party engaged in fraudulent conduct that had a material impact on the agreement to arbitrate. For example, if the other party lied about the existence of the arbitration agreement or misled the party into signing the agreement, then a court can find the arbitration agreement invalid. Duress is another defense to an arbitration agreement. Duress occurs when one party forces the other party to sign a contract under threats or coercion. If the party seeking to avoid arbitration can prove that the other party pressured them to sign the agreement due to a threat of economic or physical harm, then the court may deem the arbitration agreement invalid. Unconscionability is another defense to an arbitration agreement. This generally occurs when one party is at a great disadvantage to the other party and the agreement does not favor them. This often occurs when one party is not given enough information about the arbitration agreement to make an informed decision or if the terms of the agreement are so unfavorable to one party that a court believes they were taken advantage of. Finally, lack of consideration is a defense to an arbitration agreement. Consideration is something of value, such as money, given by one party to the other in exchange for that person agreeing to sign the arbitration agreement. If there is no consideration from either parties, then the court may invalidate the arbitration agreement.

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