In Case of Death of Parties to Arbitration Agreement Shall

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In the event of the death of parties to an arbitration agreement, it can be a challenging process to determine what should happen next. This is why it is essential to include provisions in the arbitration agreement that address this situation.

Firstly, it is recommended for parties to include a clause in the arbitration agreement that designates who would act on behalf of a deceased party. This is crucial as it will help to avoid any confusion and disputes that may arise when determining who has the legal authority to represent the deceased party.

Secondly, the clause should provide for the replacement of the deceased party. This means that the arbitration agreement should stipulate who will be appointed as the replacement for the deceased party. This replacement can be appointed by mutual agreement of the remaining parties or by an arbitrator appointed to the case.

It is important to note that the process of appointing a replacement may vary depending on the jurisdiction or any specific laws that may apply. Therefore, it is necessary to consider all relevant laws and regulations before designing an arbitration agreement.

Another essential aspect to consider is the effect that the death of a party has on the arbitration proceedings. If the death of a party happens before the arbitration proceedings have begun, the arbitration agreement may become invalid, and the parties will need to seek a new form of dispute resolution.

However, if the arbitration proceedings have started, the death of a party may not necessarily lead to the termination of the proceedings. Instead, the replacement party may continue with the proceedings on behalf of the deceased party.

In conclusion, it is crucial to include a clause in an arbitration agreement that addresses the death of the parties. This clause should provide for the replacement of the deceased party and designates who would act on behalf of a deceased party. It is also necessary to consider the effect that the death of a party has on the arbitration proceedings and ensure that all relevant laws and regulations are considered when designing the arbitration agreement.