(Solved Homework): Mr. Smith (buyer) and Mr. Jones (seller) entered into a written real estate contract to purchase…

Mr. Smith (buyer) and Mr. Jones (seller) entered into a written real estate contract to purchase Mr. Jones shopping mall which is located in Los Angeles, CA. Mr. Smith just notified Mr. Jones that he changed his mind, doesn’t think it is a good deal, and refuses to go forward with the purchase. Mr. Jones has suffered loses from this breach of contract (fees he paid his attorneys to review the contract, loss of sale opportunity, etc.) Mr. Jones has contacted his attorneys and requested them to proceed with a civil lawsuit for damages against Mr. Smith. However, the following Arbitration Clause / Provision, with the written contract, was signed / initialed by both the parties (Buyer & Seller).

A. Can you ignore the Binding Arbitration clause and take / sue the breaching party, Mr. Smith, in civil court. Not a simple Yes or No Answer please! Briefly Explain your answer (25 points)

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If we are in a arbitration contract and stillw ant to sue the other party we can do it but there is a chanceo f getting counter sued by them. In this case Mr Jones can sue Mr Smith legally but Mr Smith also can sue him for breaching the contratc. If arbitration is followed the issue will be solved in a calm manner and if Mr Jones did not like the decision of the arbitrator then he can proceed to trial.

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