Arbitration Agreement

Arbitration clauses may be a part of a business agreement and by signing the agreement you are agreeing to the arbitration stipulations. While you can’t be forced to sign any agreement, dispute resolution through arbitration may be a condition of participating in an agreement.

Yes, an Arbitration Agreement isn’t a precondition for the use of arbitration. Typically, Arbitration Agreements are drafted and executed at the beginning of a business relationship, before disputes arise. But arbitration is available to resolve disputes at any time without a previous agreement to do so.

Yes. Arbitrations are less formal than court proceedings, but the decision of the arbitrator is final and signing an arbitration agreement means you’re agreeing to comply regardless of the outcome.

The main reason is to avoid the lengthy procedures required to have a case heard in a court as well as the costs involved. Moreover, while litigation is public, arbitration proceedings are private so they may be more conducive to keeping business matters out of the public eye.

No. While the arbitration process is technically adversarial, an attorney is not required. However, it may be advisable to enlist the aid of an attorney, especially if the disputes in question have complex legal implications that would otherwise be difficult to navigate.

The Arbitration Agreement will include the channels you need to use to notify the other parties of a dispute and the nature of that dispute. Once all the parties agree to arbitrate, contact the chosen arbitrating body or group to determine the next steps for the arbitration process.