When it comes to legal documents, it`s important to understand the differences between an award and an agreement. Both documents serve distinct purposes and have unique features that set them apart from each other. In this article, we`ll compare the features of an award to those of an agreement, helping you understand which one is right for your specific situation.
What is an Award?
An award refers to a legal document that is issued by an arbitrator or arbitration panel, outlining the outcome of an arbitration proceeding. An arbitration is an alternative to a court hearing where parties submit their dispute to a neutral third party for resolution. The arbitrator`s decision is binding, meaning the parties must abide by the decision outlined in the award.
Features of an Award
1. Binding: An award is a legally binding document, which means parties must comply with the decision outlined in it.
2. Finality: An award is final and cannot be appealed, except for very limited circumstances such as fraud.
3. Confidentiality: An award can be confidential, meaning parties can agree to keep the details of the arbitration proceedings and award private.
4. Focus on facts and evidence: An award is based on the facts and evidence presented during an arbitration hearing. The arbitrator`s decision is based strictly on the evidence presented, not on legal precedent or public policy.
What is an Agreement?
An agreement is a legal document that outlines the terms and conditions of a deal or transaction between two or more parties. Agreements can be used for various purposes, ranging from employment contracts to settlement agreements.
Features of an Agreement
1. Non-Binding: An agreement is a non-binding document, meaning that parties are not required to comply with its terms and can choose to breach them.
2. Negotiable: Agreements are often the result of negotiation between parties. The terms and conditions of an agreement can be altered or amended by mutual agreement of the parties.
3. Open to interpretation: Agreements can be interpreted in different ways, leading to disputes and misunderstandings between parties.
4. Based on Legal Principles: Agreements are often based on legal principles and may reference legal precedent or public policy.
Conclusion
When deciding whether to use an award or an agreement, it`s essential to understand the differences between the two. Awards are legally binding and final, while agreements are non-binding and open to interpretation. If you`re looking for a way to resolve a dispute, an award may be the best option. However, if you`re looking to outline the terms and conditions of a deal or transaction, an agreement may be more appropriate. Always seek legal advice before choosing which legal document to use to ensure it fits your specific situation.