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On the Separability of Arbitration Clause in Agency |
1. The School of Law, People' s University of China 2. School of Civil, Commercial and Economic Laws, China University of Political Science and Law |
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Abstract It is a common practice that many contracts are concluded through agents. The effective scope of arbitration clause is still disputable when a contract signed by an agent on behalf of a principal, especially when the agency itself is under dispute. The agency theory itself can not give a satisfactory answer to this ques- tion. To analyze the effect of arbitration clause in agency from the perspective of basic value of separability of arbitration clause may lead to a reasonable conclusion. Arbitration clauses should have different effects to principals and other parties in different types of ostensible authority.
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