PRACTICE NOTES
This Practice Note closely examines the capacity of parties to conclude an arbitration agreement and to participate effectively in arbitral proceedings. It should be borne in mind that an arbitration clause may continue to operate even where the principal contract in which it sits is invalid—see Practice Notes: Arbitration agreements—the doctrine of separability (England and Wales) and Separability of arbitration agreements in international arbitration. From a capacity standpoint, this implies a party might lack capacity to enter the main contract yet still have capacity to agree to arbitrate as a matter of law.
Consequences of incapacity
Both parties entering into an agreement must possess the necessary legal capacity to do so, failing which the agreement is void. An agreement to arbitrate is in absolutely no way different in this respect from any other type of contract—see Practice Note: Forming enforceable
Arbitration