Contracts

A Vermont real estate contract provision that requires disputes to be resolved through binding arbitration rather than court litigation is called a(n):

ALiquidated damages clause
BArbitration clause✓ Correct
CMediation clause
DChoice of law clause

Explanation

An arbitration clause in a Vermont real estate contract requires parties to resolve disputes through a private arbitration process rather than court litigation. Binding arbitration results in a final decision enforceable as a court judgment. Some Vermont contracts also include mediation as a prerequisite to arbitration.

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