What is the arbitration clause in a contract?

An arbitration clause in a contract is an agreement between two parties to resolve any disputes that may arise through the process of arbitration instead of going to court. In arbitration, an independent third-party (called an arbitrator) helps the two parties reach a resolution. In Kansas, a contract’s arbitration clause must adhere to the Kansas Arbitration Act. According to this Act, the arbitration clause must state the type of arbitration chosen, the name of the arbitrator, the procedures that will be followed, and the venue of the arbitration. The arbitration clause can also include additional provisions that may be beneficial to both parties in the contract. For instance, the clause might state that each party contributes equally to the arbitration costs or that the parties have to present their case to the arbitrator within a certain timeframe. In addition, a contract may include a choice of law clause that states which laws will apply to the contract. The choice of law clause might include a requirement that any disputes arising from the contract must be resolved through arbitration under Kansas law. Overall, an arbitration clause is an important part of a contract that must be drafted carefully and adhered to fairly. In Kansas, the arbitration clause must follow the Kansas Arbitration Act in order to be valid. Additionally, the clause might include additional provisions that are beneficial to both parties.

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