Arbitration Agreement Meaning
An Arbitration Agreement is a legally binding contract between two or more parties who wish to settle a private dispute outside of court through an arbitration process. Arbitration agreement definition.
The arbitration process will consist of either one or three neutral arbitrators, depending on the jurisdiction which has been contractually agreed upon.
Where Is An Arbitration Agreement Typically Found?
Arbitration agreements are typically found in standard consumer contracts with credit card companies, financial services provides, banks, homebuilders, insurance companies, communications providers, and mobile home dealers. These standard arbitration agreements are more often than not mandatory. This means if a consumer signs the agreement, he/she must go to arbitration in the event of a dispute. Court is no longer an option. Arbitration agreement pdf.
Benefit of Arbitration vs. The Court System
The many benefits of entering into an arbitration agreement, or including it as a clause in a larger contract, include:
Either or both parties will pay for the arbitration process, which are typically lower than the costs associated with a court proceeding.
The arbitration process is a more expedient process vs. traditional court proceedings. Also, arbitration hearings are much shorter in length and require less preparation, particularly because the rules of evidence won’t apply.
A more relaxed environment, particularly for those who tend to be anxious in court.
A neutral 3rd party arbitrator is appointed and agreed upon by both parties. This means that if the disputes requires a specific technical understanding, the parties will be able to appoint an appropriate arbitrator to guide the process of arbitration.
Arbitration proceedings are private and confidential, without the attendance of family members, friends, or any media members, or the public. Decisions of the outcome of the arbitration are also not directly accessible, nor are they published.
There is generally no right of appeal in an arbitration process unless added into an arbitration agreement for employment for example. Other more common exceptions would be evidence of fraud. The arbitrator’s award is considered final and binding on both parties.
Product ID: 23922AR61
⇒ Revisions Approved
⇒ Plain English & Easy Editing
⇒ Guidance Notes Included
⇒ Money Back Guarantee
⇒ Length: 2 pages (min.)
⇒ Last Revision: 8 August 2020
⇒ Format: MS Word (.DOCX)
⇒ Rev. Number: 13886576
⇒ Product ID: 23922AR61
Arbitration Agreement, Arbitration Agreement Template