An arbitration agreement is a legal document that outlines the terms and conditions for settling a dispute between parties outside of court. It’s an agreement that the parties involved will resolve any conflicts through an arbitrator rather than through the court system.
Implied terms are the terms that are not stated in the agreement but are assumed by the parties to be included in the agreement. Here are the five implied terms that are usually included in any arbitration agreement:
1. Confidentiality: One of the key benefits of arbitration is the ability to keep the proceedings confidential. Therefore, the parties involved in the arbitration agreement will usually assume that the proceedings will be kept confidential. This means that the arbitrator and any other third parties involved in the proceedings must keep the proceedings and any information disclosed during the proceedings confidential.
2. Fair and reasonable procedures: The parties involved in the arbitration will assume that the process adopted by the arbitrator is fair and reasonable. They expect that both parties will have equal opportunity to present their case, and that no party will be unfairly disadvantaged.
3. Timeliness: The parties involved in the arbitration agreement will assume that the proceedings will be conducted in a timely manner. They expect that the arbitrator will not unnecessarily delay the proceedings, and that the arbitration will be completed within a reasonable period.
4. Legality: The parties involved in the arbitration agreement will assume that the proceedings will be conducted in accordance with the law. They expect that the arbitrator will follow the relevant laws, rules, and regulations to ensure that the proceedings are conducted legally.
5. Expertise: The parties involved in the arbitration agreement will assume that the arbitrator has the expertise required to resolve the dispute. They expect that the arbitrator will have the necessary knowledge, experience, and qualifications to provide a fair and reasonable decision.
In conclusion, an arbitration agreement is a legally binding agreement that outlines the terms and conditions for settling a dispute between parties outside of court. The five implied terms in an arbitration agreement are confidentiality, fair and reasonable procedures, timeliness, legality, and expertise. By understanding these implied terms, parties can be confident that their arbitration proceedings will be conducted fairly and efficiently.