A more thorough explanation:

Definition: Ultra vires compromissi is a legal term that refers to actions that go beyond the authority granted in an arbitration agreement. This means that an arbitration award can be reduced if it exceeds the scope of the agreement.

Example: If two parties agree to submit a dispute to arbitration and limit the award to $10,000, but the arbitrator awards $15,000, the award is ultra vires compromissi. The excess $5,000 can be reduced or set aside.

Explanation: This example illustrates how an arbitration award can be challenged if it exceeds the authority granted in the arbitration agreement. The term "ultra vires" means "beyond the powers," and "compromissi" means "compromise" or "settlement." Therefore, ultra vires compromissi refers to a settlement that goes beyond the powers granted in the agreement. This legal principle ensures that arbitrators do not exceed their authority and that parties are not bound by awards that are unfair or unreasonable.