Contractual Arbitration

An arbitration clause in contracts helps avoid resorting to courts in case of conflict between the parties to the contract.

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It is increasingly common to include arbitration clauses in contracts. These clauses allow parties to avoid resorting to courts in the event of a dispute.

Arbitration takes the form of a private tribunal where the case is heard by one or more arbitrators chosen by the parties.

To initiate the process, the parties must submit an arbitration request to the arbitrator. Upon receipt of this request, the arbitrator prepares an Arbitration Agreement that must be signed by all parties.

The arbitrator then determines the procedure. Parties are free to be represented by a lawyer and present their own expert witnesses. Once the proceedings are completed, the arbitrator issues a written and reasoned decision that binds the parties. This decision can be enforced by a court in case of non-compliance.

For your information, you are invited to consult the Arbitration Rules of the Association of Notary Arbitrators of Quebec. Members of the Association are subject to code of ethics.

It is not possible to provide an exhaustive list of all the different situations in which an arbitrator may intervene, but here are some examples:

  • A dispute arising from the interpretation or execution of a service contract with a contractor;
  • A dispute between a seller and a buyer arising from the interpretation or execution of a contract for the sale of a movable property;
  • A dispute between an employer and an employee arising from the interpretation or execution of an employment contract.

Arbitration is also particularly well-suited for business law, real estate law, condominiums, construction, and commercial leases.

Why let a dispute escalate and become more burdensome through court proceedings? Arbitration, more than a means, constitutes a more civilized solution to a dispute. Arbitration is a dynamic solution that responds well to the economic imperatives of the contemporary world, where disputes must be resolved quickly while minimizing costs.

The main advantages of arbitration are confidentiality, speed, and cost limitation:

  • Confidentiality: It is a private form of justice, in contrast to common law courts, which are open to the public.
  • Speed: The arbitrator assigned to a dispute must be requested by the parties to issue a decision within a short period. This decision is enforceable and final. Practically speaking, it can be done within six (6) months.
  • Cost limitation: As the decision is final and not subject to appeal, the costs are accordingly reduced.

Parties who wish to use an even more flexible form of dispute resolution may be better served by mediation.

Due to their training and experience, notaries are uniquely suited to impartiality between parties to a contract. They have a duty to provide advice to ensure that the parties' decisions and consents are well-informed. Notaries are the professionals best suited to act as arbitrators in a dispute.

We invite you to submit your arbitration request to Notaire-Direct®, which will meet your needs.

If you need more information on this service, please contact us
514 374-4303
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