Is an arbitration clause enforceable if it is inside the main contract?

Contracts & Business Law

Yes, provided it constitutes a valid written arbitration agreement and covers the dispute. The Arbitration Act's definition includes written agreement concerning disputes arising from a defined legal relationship.[7]

The clause should be drafted independently enough to identify what disputes are covered and how arbitration is initiated.

Sources

  1. Nepal Law Commission, **Arbitration Act, 2055**, ss. 2–3. View source
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