Frisco, TX asked in Contracts for Texas

Q: If Arbitration clause in contract refers to non-existent "Commercial Arbitration Association" is that clause invalid?

the phrase is - "Federal Arbitration Act in accordance with the Commercial Arbitration Rules and Commercial Arbitration Association". But searching online, I do not see Commercial Arbitration Association for the US, only for Japan. Does that mean I do not need to go through arbitration for any dispute?

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1 Lawyer Answer
John Michael Frick
John Michael Frick
Answered
  • Frisco, TX
  • Licensed in Texas

A: No, it doesn't invalidate the arbitration clause in its entirety. The court will have to construe the intention of the parties at the time the agreement containing that clause was signed. Clearly, the parties intended to submit any dispute to arbitration. But it is arguably unclear as to what specific rules were intended by the phrase "commercial arbitration rules" and what specific arbitration tribunal was intended by "Commercial Arbitration Association."

An argument can be made that the parties most likely intended the Commercial Arbitration Rules of the American Arbitration Association.

The parties can also agree to different arbitration rules and a different arbitration tribunal or can petition the court for the appointment of an arbitrator.

But it is clear to me that the parties intended to submit any dispute to arbitration and I think that is what most courts would determine.

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