Arbitration Clause

Arbitration Clause

In the case of Collins v. Collins (1858) 53 E.R. 916, there was something called an “arbitration clause” in their agreement. Now, this might sound complicated, but it’s actually quite simple!

Imagine you and a friend have a special rule when you play a game. Let’s say you both agree that if there’s a disagreement about the rules during the game, you’ll ask your older sibling to decide what the rules are. That’s kind of like what an arbitration clause does.

In their agreement, the Collins had a similar rule. It said that if they had an argument about something in their agreement, they wouldn’t go to court. Instead, they would ask another person or group of people (called arbitrators) to help decide who was right and who was wrong.

So, this “arbitration clause” was like a built-in plan to solve their problems fairly without going to court. It’s like having a referee in a game to make sure everyone plays by the rules. This way, they could settle their disagreements in a more peaceful and organized manner.