A buyer and seller complete mediation under the California RPA but fail to reach a resolution. The arbitration clause was properly initialed by both parties. Under the standard California RPA, what is the next step in the dispute resolution process?
Correct Answer
D) Either party may proceed to binding arbitration before a neutral arbitrator
Under the standard California RPA, when mediation fails and both parties have initialed the arbitration clause, the next step is binding arbitration. Either party may initiate arbitration proceedings before a neutral arbitrator. The arbitrator's decision is binding and has limited grounds for judicial review under CCP §1286.2.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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