The objection based on an arbitration agreement contained in a contract subsequently assigned pursuant to Articles 1406 et seq. of the Civil Code cannot be validly raised by the assignor party, since the assignment of the contract results in the transfer of the entire contractual position to the assignee, including the entitlement to defences stricto sensu arising from the assigned relationship, with consequent loss of the assignor’s standing to invoke the arbitration clause against a claim for termination or nullity of the contract.
The objective novation of a contract containing an arbitration clause results in the extinction of the clause itself together with the original obligation, with consequent ineffectiveness of the objection to arbitration based on the novated contract, even where the clause was limited to the performance and interpretation of the extinguished contract.
