Does Signed Mean Sealed

Legal Principle

Article 215 and 217 of the Civil Procedures Law of the UAE states that a person does not have the right to enter into an arbitration agreement if the signatory does not have the authority to bind the person it is representing through a private power of attorney to sign such a contract to arbitrate.

However, if a party signed on an arbitration agreement without having authorization to do so and the principal who was represented by such signing party later accepted such signature or action taken by the representative, even if at a later date, then such signature shall be valid and the contract shall be considered as effective.

Facts of the case

The claimant in the arbitration proceedings made a request for the appointment of arbitrators to resolve a dispute regarding a partnership agreement between the parties since one of the parties requested to terminate the contract and settle the financial liabilities. As it was agreed by the parties in the