Is arbitrator bound by terms of contract for liquidation damages

the arbitrator is bound by the terms of the contract that provide for liquidated damages.

Answers (2)

296 votes

arbitrator has to decide the matter within the parameters of agreement between the parties. if there are specific provisions in the agreement relating to liquidated damages, yes, the arbitrator is bond by the terms of the agreement

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280 votes


In Arbitration Proceedings, an Arbitrator is bound by the terms of contract between the parties. An Arbitration cannot decide any question or award any relief which is outside the purview of the Agreement between the parties.

However, if the arbitration agreement authorizes the Arbitrator to decide the matter on the principal of "ex aequo et bono" i.e. on equitable grounds, then arbitration can decide the matter on the principal of equity and may not be restricted by terms of agreement.

However, over all agreement has to be reviewed to decide the jurisdiction of the Arbitrator

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