A Critique Of The Law Governing Capacity Of Parties To Enter Into An Arbitration Agreement.

Abstract

The authors seek to illuminate on the legal framework used to determine the capacity of parties to enter into an arbitration agreement. In several decisions, courts have set aside arbitration awards based on the lack of capacity of parties to enter into an arbitration agreement. In doing so courts have relied even on laws not chosen parties in the arbitration agreement. These decisions are a reminder that the law chosen by the parties to govern the contract does not cover all aspects of the legal relationship between the parties, and that other laws may become applicable despite the parties’ choice of law. This discourse seeks to indepthly analyze the legal framework governing capacity of parties to enter into an arbitration agreement. In so doing, the paper will analyze both local and international laws. Insights offered by various scholars and various salient decisions of courts greatly inform this discourse. In the end, the paper will offer a conclusion to the discourse, capturing the authors view on the law governing capacity of parties to enter into an arbitration agreement.