Trace Your Case

ISSUE:

Whether an arbitration agreement in an unstamped document can be enforceable?

RULE:

While the principle of severability states that an arbitration clause is individual from the main contract, the concept is clarified and although an arbitration clause is separate, it cannot be an independent agreement when the contract has not been stamped as required by the law. Under the principle, the arbitration clause is rendered independent when the due process is followed and the entirety of the contract is held valid and enforceable.

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