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Ra 876

This document outlines The Arbitration Law, which allows two or more parties to voluntarily submit disputes to arbitration. It establishes that arbitration agreements are valid and enforceable, and can include related collateral issues. However, disputes cannot be arbitrated if one party is a minor or incompetent, unless a court approves. The law also specifies that arbitration agreements must be in writing and signed by the parties. It gives courts the power to enforce arbitration agreements and resolve issues regarding their validity.

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0% found this document useful (0 votes)
55 views2 pages

Ra 876

This document outlines The Arbitration Law, which allows two or more parties to voluntarily submit disputes to arbitration. It establishes that arbitration agreements are valid and enforceable, and can include related collateral issues. However, disputes cannot be arbitrated if one party is a minor or incompetent, unless a court approves. The law also specifies that arbitration agreements must be in writing and signed by the parties. It gives courts the power to enforce arbitration agreements and resolve issues regarding their validity.

Uploaded by

Lake Guevarra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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REPUBLIC ACT NO.

876

SEC 1. Short Title. - This Act shall be known as "The Arbitration Law."

SEC 2. Persons and matters subject to arbitration. - Two or more persons or parties may submit
to the arbitration of one or more arbitrators any controversy existing between them at the time of
the submission and which may be the subject of an action, or the parties to any contract may in
such contract agree to settle by arbitration a controversy thereafter arising between them. Such
submission or contract shall be valid, enforceable and irrevocable, save upon such grounds as
exist at law for the revocation of any contract.

Such submission or contract may include questions arising out of valuations, appraisals or other
controversies which may be collateral, incidental, precedent or subsequent to any issue between
the parties.

A controversy cannot be arbitrated where one of the parties to the controversy is an infant, or a
person judicially declared to be incompetent, unless the appropriate court having jurisdiction
approve a petition for permission to submit such controversy to arbitration made by the general
guardian or guardian ad litem of the infant or of the incompetent.

But where a person capable of entering into a submission or contract has knowingly entered into
the same with a person incapable of so doing, the objection on the ground of incapacity can be
taken only on behalf of the person so incapacitated.

SEC 4. Form of arbitration agreement. - A contract to arbitrate a controversy thereafter arising


between the parties, as well as a submission to arbitrate an existing controversy shall be in
writing and subscribed by the party sought to be charged, or by his lawful agent.

The making of a contract or submission for arbitration described in section two hereof, providing
for arbitration of any controversy, shall be deemed a consent of the parties to the jurisdiction of
the Court of First Instance of the province or city where any of the parties resides, to enforce
such contract or submission.

SEC 6. Hearing by court. - A party aggrieved by the failure, neglect or refusal of another to
perform under an agreement in writing providing for arbitration may petition the court for an
order directing that such arbitration proceed in the manner provided for in such agreement. Five
days notice in writing of the hearing of such application shall be served either personally or by
registered mail upon the party in default. The court shall hear the parties, and upon being
satisfied that the making of the agreement or such failure to comply therewith is not in issue,
shall make an order directing the parties to proceed to arbitration in accordance with the terms of
the agreement. If the making of the agreement or default is in issue the court shall proceed to
summarily hear such issue. If the finding be that no agreement in writing providing for
arbitration was made, or that there is no default in the proceeding thereunder, the proceeding
shall be dismissed. If the finding be that a written provision for arbitration was made and there is
a default in proceeding thereunder, an order shall be made summarily directing the parties to
proceed with the arbitration in accordance with the terms thereof.
The court shall decide all motions, petitions or applications filed under the provisions of this Act,
within ten days after such motions, petitions, or applications have been heard by it.

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