How Do You Enforce A Binding Arbitration Agreement?
Some contracts include arbitration clauses or agreements. Arbitration is a type of alternative dispute resolution. Instead of resolving a dispute publicly before a judge, parties can argue their cases in front of a third party decision maker. A binding arbitration agreement refers to the decision maker’s conclusion, which is final and enforceable. Review the arbitration clause to clarify ambiguous sections such as where does the arbitration take place and what law governs. A binding agreement might be unenforceable because it is too vague. Place the arbitration clause before the final signature so that the other party cannot claim lack of notice. If you include the arbitration clause at the end or in an addendum, the other party might argue that he was unaware of the clause and therefore, it should not be binding. Select a neutral third party arbitrator. A court might vacate an arbitration decision based on fraud, corruption, or partiality. For example, an arbitrator who owns part of y
