Question

Jan and Kyle sign a contract that provides if a dispute arises, they will submit to arbitration. A dispute arises, but before it goes to arbitration, Jan files a suit against Kyle. The court will likely --
A. Hear the suit and then order the parties to arbitrateB. Hear the suit without ordering the parties to arbitrateC. Order relief without hearing the suit or compelling the parties to arbitrateD. Order the parties to arbitrate

Answer 1

Answer:

D. Order the parties to arbitrate

Explanation:

Under an arbitration agreement, the parties to such a contract mutually agree to settling future disputes outside court.

Like every contract, such a contract is legally binding and the terms cannot be revoked by one of the parties later. The parties are bound by arbitration in such cases, as is mutually agreed initially.

As per the facts of the case, such an arbitration agreement has been entered into by Jan and Kyle, wherein it was mutually agreed to settle outside court, in the event of a dispute. When the said dispute arose, Jan filed a suit against Kyle.

In such a scenario, the court will likely D. Order the parties to arbitrate.