CAF-4 · Chapter 5 · Question 11 of 15
An agreement to refer any future dispute to arbitration (instead of a court) is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Valid and is an exception to the rule.
Explanation
While agreements in restraint of legal proceedings are generally void (Section 28), an agreement to refer future disputes to arbitration is a specifically recognized valid exception.
More Legality of object and consideration MCQs
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