Arbitration Agreement PDF Template

Key Features of an Arbitration Agreement

• Scope of Arbitration: This section defines the types of disputes that will be subject to arbitration. It may cover all disputes arising from a contract or only specific types of disputes.

• Selection of Arbitrator(s): The agreement often outlines the process for selecting an arbitrator or a panel of arbitrators. It may specify a particular arbitration organization (e.g., the American Arbitration Association) or provide criteria for selecting an arbitrator.

• Location: The agreement may specify where the arbitration proceedings will take place.

• Procedure: The agreement can outline the rules or procedures governing the arbitration, or it may reference external procedural rules, such as those provided by an arbitration association.

• Binding vs. Non-Binding: Arbitration can be either binding or non-binding.

  • Binding Arbitration: The decision made by the arbitrator(s) is final and enforceable in court. Parties usually cannot appeal the decision, except under very limited circumstances.

  • Non-Binding Arbitration: The arbitrator's decision is advisory. If either party is not satisfied with the outcome, they may choose to pursue legal remedies in court.

• Confidentiality: Many arbitration agreements include a confidentiality clause, meaning that the details of the dispute and the arbitrator's decision remain private.

• Costs and Fees: The agreement should address how costs and fees related to the arbitration (e.g., fees of the arbitrator, administrative costs) will be divided between the parties.

• Waiver of Class Action: Some arbitration agreements include a clause wherein parties waive their rights to initiate or participate in class action lawsuits related to the dispute.

• Governing Law: Specifies which jurisdiction's laws will govern the arbitration proceedings and the interpretation of the agreement.

Benefits of Using an Arbitration Agreement

• Speed: Arbitration can often resolve disputes faster than traditional court litigation.

• Cost: Arbitration can be less expensive than going to court, though this isn't always the case.

• Flexibility: Parties may have more flexibility in setting procedural rules and selecting arbitrators.

• Confidentiality: Unlike court trials, which are public, arbitration can be private and confidential.