Annulment Covers Everything

Legal Principle

In case of annulment of contract containing an arbitration clause the annulment shall extend to all clauses of the contract including the arbitration clause.

Facts

The plaintiff in the case requested annulment of the contract including its liability to finance and develop building and to take rental value of building for thirty years.

The plaintiff submitted that the request for annulment of contract was made because the manager of the defendant who had signed the contract did not have the power/authority to enter into such contracts. The plaintiff also submitted that the contract was not stamped by the defendant despite the internal rules of the defendant's corporation requiring that such documents bear the corporate stamp.