ContractsIntermediateAlaska Exam

A contract clause requiring all disputes to be submitted to arbitration rather than resolved in court is called a(n):

AEscalation clause
BArbitration clauseCorrect
CLiquidated damages clause
DAcceleration clause

Why Arbitration clause Is Correct

Answer B: Arbitration clause

An arbitration clause requires the parties to submit disputes to a neutral arbitrator rather than litigate in court. Such clauses are common in real estate purchase agreements and listing contracts.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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