Contracts
In Minnesota, if a purchase agreement contains an arbitration clause and a dispute arises, the parties:
AMust go to court since arbitration is not recognized for real estate disputes
BAre generally bound to resolve the dispute through arbitration rather than court litigation✓ Correct
CCan choose either arbitration or court regardless of the clause
DMust first use mediation before arbitration can begin
Explanation
Arbitration clauses in Minnesota real estate contracts are generally enforceable under the Federal Arbitration Act and Minnesota's arbitration statutes. If parties agree to arbitration, they are typically bound to use that process rather than court litigation.
Related Minnesota Contracts Questions
- Under Minnesota law, a purchase agreement for residential property must include which element to be enforceable?
- A Minnesota buyer submits an offer with a 48-hour response deadline. After 24 hours, the seller submits a counter-offer. What happened to the original offer?
- A Minnesota purchase agreement contains an earnest money clause of $10,000. If both buyer and seller sign a mutual release, the earnest money is:
- In Minnesota, a purchase agreement is considered 'fully executed' when:
- A Minnesota seller accepts a buyer's offer and signs the purchase agreement. Before the buyer receives notice of acceptance, the seller wants to withdraw. Under contract law, the seller:
- In Minnesota real estate, a counteroffer legally:
- In Minnesota, a 'novation' in a real estate contract occurs when:
- Which clause in a Minnesota purchase agreement allows the buyer to back out if they cannot obtain financing?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →