Arbitration Agreement,Simple
Arbitration Agreement, Simple
_______________, referred to as the 1st PARTY, and __________________, referred to as the 2nd PARTY, agree:
A dispute has arisen. The parties herewith agree that each shall forego litigation of the dispute and instead submit the dispute to final arbitration under the terms and conditions set forth herein.
The parties select ________________________________________ to act as the Arbitrator (s).
This Arbitration shall be governed by the laws of the State of __________ regarding Arbitration.
The Arbitrator (s) shall enter their final finding as a judgment in any court having jurisdiction between the parties.
The Arbitrator shall be compensated as follows:
________________________________.
This is the entire agreement between the parties, and this agreement may only be varied by a writing executed by the parties hereto.
Dated: __________________
____________________________________
First Party
____________________________________
Second Party
Arbitration Agreement, Simple
Review ListThis review list has been provided to inform you about this document in question and assist you in its preparation. Arbitrations are an effective and final method to end a dispute. Even if you lose, it is over and the related costs end. Most arbitrations tend to split the difference so the ending is not too bad for either party.
1. Make multiple copies. Give one to each signatory. Keep one with the transaction file.
2. The value of this “simple” approach is to get quick agreement between the parties. The other agreement provided is more detailed and probably better for your purposes if you can get it signed.
3. You can adapt this agreement to mediation by changing the language accordingly (which means, in essence, a get together to “discuss” as opposed to resolve).
Frequently Asked Questions
What is a simple arbitration agreement?
A simple arbitration agreement is a contract in which two parties agree to resolve a dispute through arbitration instead of litigation. The agreement identifies the parties, the dispute, the arbitrator, and the governing law. It also states that the arbitrator's final finding may be entered as a judgment in any court with jurisdiction.
When should I use an arbitration agreement?
You should use an arbitration agreement when a dispute has already arisen and both parties want to avoid going to court. The agreement is designed to submit an existing dispute to final arbitration. It is not intended to be a pre-dispute clause for future disputes.
What are the key elements of a simple arbitration agreement?
The key elements include the names of the parties, a statement that a dispute has arisen, the agreement to forego litigation, the selection of an arbitrator, the governing law, the method of arbitrator compensation, and a statement that the arbitrator's finding can be entered as a judgment. The agreement also includes a merger clause stating it is the entire agreement and can only be varied in writing.
How do I select an arbitrator in a simple arbitration agreement?
The agreement provides a blank space for the parties to name the arbitrator or arbitrators. The parties must mutually agree on the individual or individuals who will serve. The selected arbitrator's compensation is also specified in the agreement.
What law governs a simple arbitration agreement?
The agreement states that the arbitration shall be governed by the laws of the State specified in the blank. The parties must fill in the name of the state whose arbitration laws will apply. This choice of law determines the procedural rules for the arbitration.
Is the arbitrator's decision final under a simple arbitration agreement?
Yes, the agreement states that the arbitrator shall enter their final finding as a judgment in any court having jurisdiction. This means the decision is binding and enforceable. The parties agree to forego litigation and submit to final arbitration.
Can a simple arbitration agreement be changed?
The agreement states that it is the entire agreement between the parties and may only be varied by a writing executed by both parties. Therefore, any changes must be made in writing and signed by both parties. Oral modifications are not permitted.
What is the purpose of the review list in a simple arbitration agreement?
The review list is provided to inform the parties about the document and assist in its preparation. It notes that arbitrations are an effective and final method to end a dispute. The review list is not part of the agreement itself but serves as a guide.
How is the arbitrator compensated in a simple arbitration agreement?
The agreement includes a blank space to specify how the arbitrator shall be compensated. The parties must agree on the compensation terms and fill them in. The compensation is typically outlined as a fee or other arrangement.
What happens if the parties cannot agree on an arbitrator?
The agreement does not provide a fallback mechanism if the parties cannot agree on an arbitrator. The blank space for the arbitrator must be filled in for the agreement to be complete. If the parties cannot agree, the arbitration agreement may not be effective.
