Can You Change a Contract After Arbitration?

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Contracts serve as the bedrock of business transactions and personal agreements, outlining the rights and obligations of the parties involved. After the ink is dry, circumstances can change and the need to amend or modify contracts may arise, even after arbitration in Calgary. It is very important to understand if there is any availability to amend an existing agreement or Arbitration Award. 

Understanding Arbitration in Calgary

Before addressing contract modifications, it’s crucial to grasp the fundamental principles of arbitration.. Arbitration is a method of dispute resolution where parties involved in a contract opt for a neutral third party, known as an Arbitrator, to make binding decisions to resolve their disputes. The Arbitrator assesses evidence, hears arguments, and renders an enforceable Award (like a Judgment) in accordance with law.

Can a Contract Be Altered After Arbitration?

  1. Limited Post-Arbitration Changes: Generally, the arbitration award is considered final and binding once arbitration has concluded. The process is designed to provide a swift and definitive resolution to disputes. Consequently, the ability to amend a contract after arbitration is typically restricted.
  2. Possible Contract Modification: Modifying a contract after arbitration is not entirely impossible. With good faith and without duress, the parties can mutually agree to amend certain terms or clauses through the original written agreement or an addendum to it..
  3. Exceptional Circumstances: In special cases, where there is evidence of fraud, duress, or coercion during the arbitration process or where there has been a significant change in circumstances that could not have been foreseen at the time of arbitration, a court may entertain a request to modify the contract. Such cases are rare and require compelling evidence.

Steps to Modify a Contract Post-Arbitration

If there is a genuine need to modify a contract after arbitration in Calgary, here are the steps to follow:

  1. Mutual Agreement: All parties involved must agree to the proposed contract modification. This agreement should be in writing and clearly outline the contract terms or clause changes.
  2. Legal Review: Consult with legal professionals specializing in contract law to ensure the proposed changes are legally sound and compliant with Alberta’s laws and regulations.
  3. Formal Amendment: Prepare a formal contract amendment or addendum that identifies the contract in question, specifies the modifications, and includes all parties’ signatures. This document should be executed with the same level of formality as the original contract.
  4. Documentation: Retain all records and documentation related to the contract modification, including communication and correspondence between the parties.
  5. Consider Arbitration Agreement: If the original contract contained an arbitration clause, it’s advisable to include a clause in the amendment stipulating how future disputes arising from the modification will be resolved, whether through arbitration or another method.
  6. Legal Review (Again): Have the contract amendment reviewed by legal professionals to ensure it complies with all legal requirements.
  7. Arbitration Award: If a contract is being amended after an Arbitration Award, be sure to indicate in the contract modification or addendum what parts of the Award are specifically amended and of no continued force and effect.

Challenges & Considerations

It’s essential to be aware of several challenges and considerations when seeking to modify a contract after arbitration in Calgary:

  1. Binding Nature of Arbitration Awards: Arbitration Awards are typically binding and final. Courts are hesitant to reopen issues that have already been resolved through arbitration.
  2. Burden of Proof: Proving the need for contract modification based on exceptional circumstances, such as fraud or coercion during arbitration, can be a substantial legal challenge.
  3. Enforceability: Any contract modification must comply with Alberta’s contract laws and be enforceable in accordance with legal standards.
  4. Arbitration Clause: If the original contract contained an arbitration clause, parties should consider how future disputes arising from the modification will be handled to avoid potential conflicts.
  5. Legal Counsel: Seek legal counsel when contemplating contract modifications to ensure compliance with the law and mitigate risks.

Changes After Arbitration in Calgary: Seeking a Lawyer

Modifying a contract after arbitration in Calgary is a complex and challenging process that should be cautiously approached. While it is possible under certain circumstances, it requires the unanimous consent of all parties, legal scrutiny, and adherence to Alberta’s contract laws. Given the binding nature of arbitration awards, it is generally advisable to consider and negotiate contract terms before entering into agreements and seek legal guidance when contemplating modifications. Understanding the limitations and legal considerations involved is essential to making informed decisions in the realm of contract modifications post-arbitration.

There is a brighter future ahead with McLean Legal Family Lawyers. As your dynamic, multi-service family law firm in Calgary, McLean Legal Family Lawyers can offer you personalized legal services tailored to your particular circumstances. We endeavour to resolve matters quickly and with minimal conflict, offering calm, professional, and realistic advice. Given our years of experience in family law, we can assist with your child support, spousal support, divorce, mediation, and separation agreements, as well as civil litigation issues, commercial/corporate services, and real estate transactions. With over 30 years of experience and success, we’re the Calgary family lawyers that offer you a brighter future. Book your free consultation by calling 587-353-2632.

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