This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
It differs from discharge by new contract, by account stated. by accord and satisfaction and by release, in that the amount to be paid in satisfaction for the liability in question is not agreed upon by the parties themselves, but is determined by third parties selected by the parties to the original transaction for that purpose. A complete arbitration consists of three different steps: the agreement between the two parties to refer the matter in dispute to the judgment of the arbitrators, which is known as the submission;1 the proceedings before the arbitrators by which they ascertain the amount which one party is to pay to the other in satisfaction of the matter in dispute;2 and the decision rendered by the arbitrators upon the matter in dispute, which is submitted to them for arbitration, which is known as the award.3
18Martyn v. Arnold, 36 Fla. 446, 18 So. 791. The same view seems to be entertained in, United Hardware-Furniture Co. v. Blue, 59 Fla. 419, 35 L. R. A. (N.S.) 1038, 52 So. 364; but in this case the evidence failed to prove an account stated.
19 See Sec. 1316 et seq.
20Gutshall v. Cooper, 37 Colo. 212, 6 L. R. A. (N.S.) 820, 86 Pac. 125.
21Gutshall v. Cooper, 37 Colo. 212.. 6 L. R. A. (N.S.) 820, 86 Pac 126.
1 District of Columbia v. Bailey, 171 U. S. 161, 43 L. ed. 118; Whitcher v. Whitcher, 49 N. H. 176, 6 Am. Rep. 486.
On the subject of arbitration generally, see Arbitration, by John M. M'Can-dlish, 7 Juridical Review, 53; Interdiction of Arbitration Proceedings, by R. D. Melville, 15 Juridical Review, 379, and Alternative Awards in Arbitration, by R. D. Melville, 17 Juridical Review, 360.
See also Sec. 723.
The third persons to whom the matter in dispute is thus submitted are known as arbitrators;4 although where the matter in dispute is submitted to one party, or where two arbitrators are selected with power to call in a third, if they can not agree, the single person to whose judgment the matter in controversy thus submitted is known as the umpire.5