§ 173.001.Purpose

A purpose section that explains an entire chapter in one line of legal history.

The rule being abrogated is the old one. At common law a court would not specifically enforce an agreement to arbitrate a dispute that had not yet arisen.

Executory is the operative word. The promise was to arbitrate something in the future, and a party could refuse when the time came.

A refusing party was left to damages, which were nominal. The practical result was that a promise to arbitrate a future dispute could be broken at no cost.

Chapter 171 solved the same problem for statutory arbitration, making a written agreement to arbitrate a future controversy valid and enforceable.

This chapter does it for common law arbitration, which is a distinct thing: an arbitration conducted outside the statutory scheme, under the parties’ own arrangements.

The distinction matters to the organisations covered. A nonprofit resolving a dispute between members through an internal process is not running a Chapter 171 arbitration.

The chapter is short because that is all it does. Four sections: purpose, scope, validity and a savings clause.

The remaining common law is untouched. Section 173.004 says the chapter is cumulative and, except as specifically provided, does not abrogate or repeal other law on common law arbitration.