This section is from the book "Hill's Manual Of Social And Business Forms: A Guide To Correct Writing", by Thos. E. Hill. Also available from Amazon: Hill's Manual Of Social And Business Forms: The How-To-Do-Everything Book Of Victorian America.
THE SUBMISSION of any question concerning the rights of persons or personal property, by parties in dispute, to the decision of one or more disinterested individuals, mutually agreed upon, instead of taking the controversy before a court of law, is called an arbitration.
Both parties may have sufficient confidence in some one person to abide by his single decision. Usually, however, each party selects one individual, and the two thus appointed choose a third one, who is called the umpire, to assist them in forming their judgment. In such a case the decision is made either by all agreeing, or the agreement of two against the other, as may be provided in the submission.
The decision of the arbitrators is called an award.
Arbitrations, and their determination of cases, are sometimes regulated by the laws of the State in which they occur.
Arbitrations are not always voluntary on the part of the persons in dispute, for in some States one party may compel the other to refer the case to arbitrators, if he refuses to do so. This is called a reference.
The courts may also sometimes order a dis-puted case to be settled in this manner, with the consent of both parties.
A party cannot be compelled to agree to arbitrate, nor after he has signed the agreement can he, as a general rule, be compelled to select his arbitrators, nor after the arbitrators are appointed can he be compelled to submit his side of the case. But after a valid award has been made the courts will enforce it. Either party may recall his submission to arbitration, however, at any time before the award is written out; but the party who thus recalls the arbitration is responsible for all the costs and damages that have accrued in consequence of his previous consent to submit his case to arbitrators.
If an award is illegal, unreasonable, incapable of being executed, or indecisive of any or all matters submitted to the arbitrators, it is not binding.
Beside the agreement to submit the questions in dispute, called a submission, the parties usually execute to each other, with sureties, a bond to abide by and perform the award, on which also a suit can be brought, if the award is not performed.
Arbitrations are customary in disputes relating to wages for services, current accounts, failures to fulfill contracts, partnerships, annuities in lieu of dower, land titles, boundaries and trespasses.
Awards may cover the payment of moneys, the fulfillment of agreements, the delivery of goods or writings, the assignment of mortgages and leases, and the specific conveyance of land, but not as to the title to land.
The following is the general form to be used in referring all matters in dispute between the parties at issue; the special form is used where the controversy is confined to one or two particular disagreements:
Know All Men by These Presents, That we, the undersigned, hereby mutually agree to submit all the matters in difference between us, of every kind, name and nature, to the determination and award of Edward Blair, Edward R. Stimpson and Robert Merritt, of Vil-lisca, Montgomery county, Iowa, as arbitrators. That said arbitrators, or any two of them, shall hear and determine the matters in dispute between us, and award the payment of all the costs and expenses incurred in such arbitration. That the said arbitrators shall make their award in writing on or before the tenth day of January, A. D. 1883. Done at Villisca, Iowa, December 1, A. D. 1882.
John Clever, T. S. Wallet.
MERRICK WELCH, SIMON J. GROVER.
Know All Men by These Presents, That we, the undersigned, are partners doing business under the firm-name of Welch & Grover, at Villisca, Iowa, and are about to dissolve our partnership. That a controversy exists between us concerning the settlement of the firm business, and the business transactions and claims by and between us, subsequent to the twelfth day of June, A. D. 1882. That we hereby mutually agree to submit these matters in difference between us to the determination and award of, etc. (As in the form of general submission, to the end. )
[Other special grievances may be embodied in a similar form. ]
Each party in dispute executes this bond to the other, so that both are equally bound to submit to the award of their chosen arbitrators.
Know all Men by These Presents, That I, Merrick Welch (or Simon J. Grover), of the town of Villisca, in the county of Montgomery, and State of Iowa, am held and firmly bound to Simon J. Grover (or Merrick Welch) in the sum of Two Thousand Dollars, for the payment of which I bind myself and my legal representatives by these presents.
The condition of this obligation is: That if the above bounden Merrick Welch (or Simon J. Grover), or his legal representatives shall submit, perform, and comply with the award, determination, judgment and orders of Edward Blair, Edgar R. Stimpson and Robert Merritt, the arbitrators named and selected by the said Merrick Welch and Simon J. Grover to award, determine, judge and order of and concerning the controversy existing between them, as partners, as to the settlement of the firm business and the business transactions and claims by and between them subsequent to the twelfth day of June, A. D. 1882 (with power to award payment of costs and expenses incurred in said arbitration), then this obligation shall be void; otherwise it shall remain in full force.
Sealed with my seal and dated this first day of December, 1882.
MERRICK WELCH, (Or SIMON J. GROVER.)
John Clever, T. S. Waller,