Contracts

A NH purchase and sale agreement specifies that disputes between the parties will be resolved by 'binding arbitration.' This means:

ANHREC will resolve all disputes
BThe parties waive their right to court litigation and agree to resolve disputes through a neutral arbitrator whose decision is final✓ Correct
CThe NH Superior Court appoints an arbitrator
DArbitration is optional and either party can still go to court

Explanation

A binding arbitration clause requires the parties to resolve disputes through arbitration rather than court litigation. The arbitrator's decision is binding and generally final. Arbitration can be faster and less expensive than litigation, but limits the parties' appeal rights compared to court proceedings.

Related New Hampshire Contracts Questions

Practice More New Hampshire Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New Hampshire Quiz →