Should arbitration agreements be put in a written contract?

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According to the Arbitration Act, arbitration agreements should be put in writing. However, this does not necessarily mean a separate written agreement different from a business contract is necessary. Many arbitration agreements are contained within another contract as an arbitration clause.

If a contract with an arbitration clause is deemed invalid by a court of law, the arbitration clause itself will generally survive and be considered valid. Japanese courts, as well as the Arbitration Act, recognize the severability of an arbitration clause from the contract it is contained in.

If you want to include an arbitration clause in your business contract, please contact our office to set up a legal consultation.